Choosing the best Investment Suburb for you
When choosing where to invest, it is vital to think about what residents find attractive in the property and the suburb they want to move to. Research by realestate.com.au demonstrated how livability of the suburb plays a crucial part in people’s choice. So if you’re thinking of investing, you should consider suburb livability, economic factors, and current market trends.
1. Filled with Pride
Everybody has different priorities when it comes to a place they’re proud to call home. It’s important to consider what the suburb has to offer for your investment. Is the area you’re looking into close to the city, near nature reserves, or has a playground/park areas?
A suburb with a good reputation, array of conveniences, and a community spirit were identified by 95 per cent of people as important factors. It turns out that people are ready to give up having a big house for the area where they feel like they belong.
2. Access to Supermarkets and Shops
One of the most important factors people consider when choosing the suburb is whether there is quick and easy access to supermarkets and shops in the area. Around 94 per cent of people stated how they want to have a grocery store nearby if they need some urgent goods. When it comes to local cafes, residents believe they add a unique character to the community spirit and unite the local community, which increases the liveability factor.
3. Greenery and Parks
Having access to outdoor areas like parks, playgrounds, and park areas for pooches come to the top as well. It is a perfect opportunity to spend time with the whole family, go for a morning stroll or a picnic.
4. Public Transport & Amenities
While driving gives freedom to travel anywhere your heart desires, with rising petrol prices, parking fees, and congested roads, many families consider suburbs with access to public transport. People want to have an option to use a bus or a train if they're going to get to work, school or go out for dinner and drinks.
Other factors to consider for your investment property is whether the area is within close proximity to schools, childcare centres, major office hubs, or if there are any exciting government projects in the area. Check the local council website for planned infrastructure that could impact the suburb and properties – both for the positive and negative impacts. Proximity to these areas can greatly affect the value of your investment.
As a result of such demand, suburbs with these conveniences experienced price growth in the past decade. So when looking for the investment opportunity, consider these factors.
5. Research the Sales Numbers
Check out the sales data readily available online so you can see how property is performing in suburbs that you are considering. Not only assess an area’s past capital growth by comparing price or rent increases over a period of years but try to imagine the future population growth potential for the area.
6. Rental Vacancy Rates
Next, check out rental vacancy rates – the tighter the rental market, the better. Investing in a suburb with low vacancy rates will increase the likelihood of being able to rent the property quickly as there will be competition between tenants. Conversely, high vacancy rates can indicate an oversupply of properties.
7. Look Around
Once you feel comfortable with your knowledge of growth suburbs, sales results and rental vacancy, be open to areas and suburbs with potential that hasn’t quite boomed yet. To avoid paying top dollar in suburbs that have already peaked, look just a little further out to neighbouring suburbs.
Want an overview on a suburb’s current rental, vacancy and sales data for your next investment property or want a check-up on one of your property’s market, click here to get a free investment market analysis report.