Dear investors,
The approach I have just realised to find best area to find IP is,
1)Look at the town price below $115,000.
(affordability)
2)Look at the lowest capital growth in last year. If capital growth is more than 15% – I would ignore that town.Please help, am I on the right track to find future IP. Any suggestions. Should i change my figures $115,000 or 15%.
How do I find, how much people can afford living in that area? any help in this regard too..pls..
Sincerely,
ViralHi Viral,
You are able to find out how much an avaerage household earns in a particular area if you go to the sense website or find out what the area is: ie: city of dandenong, city of Glen Eria, etc. It will show you all these figures of the population in the are, how much they earn, how much they’re willing to spend, what they spend on rent, etc.Hope this helps.
Bear.Thanks for your reply. What is sense website where I can find households income, affordability of people in town, how much rent they pay…Please help.
Npz, here are some websites you can go to:
http://melbourne.areaconnect.com/statistics.htm
http://www.miceastmelb.com.au/demographics96.htmOtherwise, you can go to the local council in the area and ask them for some information. They’re always more than happy to help. [smiling]
viralk,
You could go to google.com.au and type in:
“blahtown household income”
“blahtown rental yield”
“blahtown median house price”If these things have been explored, then they’re usually on the net. Anything the Council has done will be on their own website too.
viral, as to your idea of choosing places that have not had a lot of CG… I understand that- it’s one of the things I look at too. Many people are searching for “undervalued” places. When people say “Balmoral has had CG of 60% this past year… I know that it might be either (a) out of my price range.. or (b) the horse has bolted.
However, it depends on what place you are looking at. If a location has had no CG, you might ask why. Is it undesirable to investors? Is there a possibility of capital loss? As someone else has said on this forum today, if you are just seeking yield, and no possibility of growth, you might want to crunch the numbers – and check out what your property wealth will be in a few years time.
Suburbs next to booming suburbs are one way that people find undervalued places. Check out API magazine for lists of suburbs all over Australia, and the measurements for CG. Then find the suburb of your choice and check out the other comparative indicators. They’re usually all different.
kay henry
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