I have just dipped my toe in the water with investing.
We own our own home worth about $700k and have aline of credit for $400k We purchased a run down ex Govie in Queanbeyan NSW (we live in the ACT) I completely renovated the house over a period of 6 months doing all the work myself and currently rent it out for $400 a week whch isn’t bad for a place that wasn’t habitable when we bought it.. We are now negotiating a mortgage to repay our line of credit and start again.
I constantly read about investing and one of the things that is very clear is the need to research areas to find ones that for one reason or another are going to increase in value.
My question is how do you do that? Do you go to council sites? How can you dind out that Woolies is going to build in a town or a shopping mall is going up or a freeway is being built?
Happy to put in the time but would appreciate a point in the right direction.
Thanks for any help you may be able to give me
Roger
Hi Roger,
Well if there was a way to guarantee 100% success we’d all be pretty happy, but lets face it trying to pick the next “boom” area is not that easy.
First you need to understand at what stage the property cycle is at. By the time a “boom†hits the media, its often too late, the smart property investors have already scooped up most of the bargains. Beware that interest rates alone don’t explain trends in the property market.
So many factors impact a property market its hard to give you a precise formulae however the following factors should be watched closely to give you a better chance of buying in the right place at the right time:
•Established area where a Developer is coming in and buying property.
•Re-development plans for a neglected district that will revitalise the retail district. (Urban Renewal Task Force OR Suburban Centre Improvement Projects)
•Population & Migration growth- more people there’s a greater demand for houses to live. (www.abs.gov.au)
•Major employers or industry moving to an area (i.e. Resources boom in WA). Jobs attract people.
•Infrastructure – Improvements to infrastructure, such as new/upgrading roads and railway lines can change the value of a suburb. This is usually associated with an initial boost when constructions commences and then again on completion.
•Social Changes – Lower birth rate and the ageing baby boomers retiring for a “sea changeâ€Watch out for the ripple effect when a suburb has experienced a very strong surge often the neighbouring suburb will become undervalued in comparison.
Sometimes you can predict the future by observing history. Pinpoint a recent boom area, study its characteristics and then search for areas with similar qualities that haven’t boomed yet.
For research data and report’s :
http://www.propertydivas.com.au/5Tools/DivaLinks.aspxAmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
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