I'm in the throws of planning my first property development and I'm looking at various suburbs in Melbourne that fit my budget for the initial site purchase.
– How does one determine whether or not an area has a particular demand for a certain type of property? I've spoken with realestate agents and (unsurprisingly) received conflicting responses.
– Is there a method or data I can use to help me narrow down the suburbs without spending months in an area only to find it's not really suitable?
I understand that I will then go deeper into that suburb – but if there are indicators that I can use to rule out (or in) a particular area over another in the initial stages that would be a very helpful time saving approach and more importantly I'd have a better understanding of the market, rather than relying on agents or other self-interested parties for their opinions.
Thank You and Merry Christmas!
Hi there,
The rear pages of the Australian Property Investor Magazine has stats which include vacancy rates. http://www.sqmresearch.com.au also offers free vacancy rate charts. Also you can watch the rent pages for your target suburb on http://www.realestate.com.au. Note down what is for rent and see how long it takes the ad to disappear (meaning the place got rented). I like to get a spreadsheet happening that lists the address, property type (house, unit, apartment in highrise) number of bedrooms, price, renovated/unrenovated, and whether or not the place is close to shops, trains, schools. It shows you not only how long properties take to clear, but also what kind.
Three or four weeks of this kind of monitoring should have you feeling pretty certain IN YOUR OWN MIND of what's going on in terms of demand in that suburb.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Thanks JacM – I've been looking at all those links and now discovered more.
I think my strategy will be the key driver as to what suburbs will suit me.
Pleasure. Check back in with us and let us know how you are going
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I agree with Jacm
The simple answer is you need to understand the market you are looking at like the back of your hand
How close is the site to public transport and shopping. My experience shows that properties close to shops and public transport are easier to sell and of course rent.
The other point to consider is if you are looking at small site you will have a lot of competition. A two or three unit site you are competing with other investors and builders. I personally like sites over 1 million they tend to have more profit because you do not have the same competition as cheaper site.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Funny you should say that Nigel, I am getting bored of the 3 bedder house market in some suburbs, it's a nuisance competing with all those emotional home buyers.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hey JacM,
Would you happen to have a blank copy of that spreadsheet your talking about? I'd be really interested to see how you have it set up and with your permission even look at using it for myself as I get educated on property markets.
Regards,
Matt.
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