WHERE TO INVEST – HOT LOCATIONS
Your valued client is ready to start their property portfolio, they are finance ready and you want to ensure, as their trusted adviser, the very first property they buy sets them up for future growth to leverage the next purchase.
Let me share some thoughts with you that might help.
Where they buy is probably the single biggest factor in determining future capital growth.
WHAT IS A HOT LOCATION?
A hot location is one where the value of the investment is expected to rise significantly in the foreseeable future (3-7 years).
HOW DO YOU IDENTIFY A HOT LOCATION?
When researching, firstly look for these investment fundamentals.
Access to amenity (shops, restaurants, cafes, markets, basic community services etc)
Access to transport (trains, trams, buses, road network)
Access to healthcare (hospitals, medical centres, GPs, specialists, dental etc)
Access to education (child care, primary and secondary schools, TAFES, universities)
Access to recreation (parks, playgrounds, walks, sporting facilities)
The residential/investment market is solidly driven by these basic factors but there may be other underlying attributes that could determine a hot location.
When prime suburbs become unaffordable, buyers look for neighbouring areas to live and invest therefore promoting demand and price growth – e.g Coburg to Fawkner in Victoria.
A run-down suburb can significantly benefit from government spending on urban renewal and other strategic initiatives – Be on the lookout for future plans e,g Richmond and Collingwood in Victoria, Woolloongabba in Brisbane.
8/10 Aussies live within 50kms of the coast so buying within that parameter will guarantee demand and price growth fuelled by our obsession with the water, e.g Capital growth over the last 12 months in Noosa (24%) and the Mornington Peninsula (19%) have been standouts.
Large infrastructure projects that improve the livability of a suburb can also determine future growth e.g expansion of the North Melbourne train station or West Gate freeway expansion in Melbourne creating better access for the western corridor
In practice, it’s going to be challenging to tick all the boxes considering client budget and stock availability in a competitive property market.
Success in identifying the next hot property location rests with lots of research and knowledge.
Investorist can help to identify and recommend key properties that we believe meet most of the criteria for your clients.
Contact Maxwell Price on 0408 521 708 for more info
Or become an Investorist member,
