There is a small satellite town close to where i live that in approx 2yrs is due to have a new road built that will give better access to the main city.
My question: How much prior to predicted hotspot becoming hot would you buy?
My thoughts are at this time my money be better of else where, until such a time that the satellite town begins in climb in value.
I believe buying early on i could get the most in capital gains but would find it hard to get tenants until the road was built. If i buy closer to the start of the boom i will pay a little more however get the good capital gain and on completion of the road have less trouble finding a tenant
That is a tricky one.
I would probably try to buy now. It will be really hard to predict when the market tries to cash in on the new road.
Do some research. What are the vacancy rates now? How high are the rents.
Spend time in the town and talk to lots of people (in cafes, shops, real estate agents, etc, etc). Get a feel if your assesment is on the mark.
See if you can achieve a cashflow positive property.
Good luck
Wow, if the road does go ahead, the town will no doubt get busier. Could be an opportunity. I reckon keep an eye on the town from now on. Maybe a great deal will come along. Two years isnt long in real estate terms and there will be alot of competition from other people when things actually start happening.
Hi Paybac,
There is more to finding the next “boom” area than a new link road. Certainly this will help in the long run. Major infrastructure improvements in an area when first announced can see prices move, but the biggest increase will come once the project is complete and people can see the benefits.
Look out for other signs such as a Developer coming in and buying property.
Council re-development plans for the area.
The biggest influence however is population & migration growth – more people there’s a greater demand for houses to live.
Check out the major employers or industry moving to an area – jobs attract people who need somewhere to live.
Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
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