3 SIGNS A SUBURB IS ABOUT TO BOOM

One of the key ingredients to becoming a successful property investor is timing. Buying at just the right time will enable you to acquire properties at a reasonable cost before the market picks up and prices skyrocket. It’s also important if you want to know when the best time is to sell the property to get the most returns from it. In this article, we’ll focus on the first one.

When it comes to knowing the right time to buy, a bit of intuition can help, however you don’t want to risk your financial independence on a feeling alone. It is important to learn how to recognise the signs that indicate a particular suburb is about to boom. Here are some of the key signs a suburb is about to boom.

1. Property figures

Numbers are the most reliable way to find out if a suburb is on the verge of a boom. For one, keep an eye on the houses on the market and the average number of days each house is on the market. This will give you a great insight into whether the suburb is on the up, if the properties are being snapped up quick then you can presume the market for that suburb is about to pick up and you could be in for a great deal if you act quickly.

While you may be tempted by suburbs offering very low prices compared to months previous, you also need to be wary of these as this could indicate the suburb is on the down and residents are trying to get out before they lose too much. A safer option is to opt for a suburb whose prices are down 5% rather then 10% or more. Of course, factor in the prices of properties in the suburb as well. Go for properties that you can buy cheaply, but have good potential for returns.

2. Redevelopment

Another good indicator that a suburb’s going to pick up is gentrification. Some signs that a suburb is going through this phase include the influx of younger people buying properties in a fairly affordable suburb, older properties are being renovated, and new shopping malls are cropping up in the area.

If you can find a suburb experiencing redevelopment, then chances are that they might be a good buy. You’ll still be able to buy cheap and then cash out once it becomes more established and becomes a more sought after area.

3. Development projects in the area

Plans for infrastructure can be a great sign for future growth for a suburb, for example new highways making journeys shorter to the CBD often makes it that suburb more attractive for property buyers or renters who commute to the city for work as they often look for convenience when looking for their new home.

Of course, this is all easier said than done and property investment can be tricky for those who do not know the Perth property market as well as others. Our agents conduct regular market analysis and consider government expenditure, infrastructure plans and consistently monitor the Perth property market to find you the perfect suburb for your investment property. We encourage our clients to purchase property within their price bracket and hold on for it long enough to build capital growth, which will assist them in reaching their financial goals. Contact our knowledgeable agents to discuss your future investment in Perth today.