Curious to see what others focus on when buying for growth... Established patterns? Economic activity? Waterfronts?
Discuss.
Discuss.
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In no order of importanceCurious to see what others focus on when buying for growth... Established patterns? Economic activity? Waterfronts?
Discuss.
Hi Jake
One strategy I use for capital growth and cashflow is identifying State Housing areas that Government is upgrading/rezoning to higher density. Typically I like this to be close to capital city with excellent infrastructure where surrounding areas are much cheaper. In Perth for example we have Hamilton Hill, Craigie Girrawheen, Koondoola just to mention a few, all going through massive changes/rezoning.
IMO when CG strategy is mentioned most automatically think (me included) of something unique such as beachfront, inner city period homes etc. Unfortunately the entry level for these types of properties are too high making it difficult to hold long term. Also, when there is a downturn these types of properties are not immuned.
I also chase cycles for growth, I invest in any State in Australia that is moving. I started doing this about 5 years ago. I believe this also reduces your exposure.
Cheers, MTR
In no order of importance
Gentrification - generally by the govt and council. I'm always happy to let them spend money on an area and reap rewards
Proposed Rezoning - a risk but good for holding.
Amenities - parks, public transport, shopping, schools (including popular schools with zone boundaries)
Distance to City - I think suburbs which are 1-2 from the city are prime and often better than the actual city suburb.
Rarity - tightly held suburbs sometimes have little data to rely on but can generate good returns. I've just bought in a suburb which had 12 sales in the past year so data is sketchy but it ticks Amenities, Distance to City and Rarity.
Economic activity for towns under 100,000
Unless we are talking major activity like seen in WA the past 10 years which has obviously benefited Perth.
I think waterfront is a flow on gain. So if a particular large city was to move because of economic activity then you could go for waterfront property and potentially make quick and large capital gains.
As for established patterns? Well the problem I see with this is that the variables are constantly changing. Zoning, development restrictions, income of people in the area, infrastructure/ transport.
Jake do you believe that inner city suburbs can continue their established patterns? I just don't see how it is possible due to income not keeping up with property values.
Seems that we have some similar tastes in information in this thread. What are your most preferred sources / resources to find this info Rixter?
Hi MTR - What do you believe the pros and cons are with investing in lower-socio areas?
What time frames are you working toward, and are you focusing on buying and holding, renovating or developing?
Land size. When things are ticking along slowly there is no great difference. During/after a boom the bigger land size properties snowball.
Jake....don't mean to be rude, but shouldn't you, as buyers advocate, know exactly what to look when buying for growth ? I'm looking for my first IP and am considering using a buyers agent as I'm time poor, and the number one question i would expect them to answer is the very question you post...I gotta tell you, you scared the **** out of me and now am seriously thinking it twice before paying over 10k to someone who is supposed to know the market inside out but is asking fundamental questions in a users forum.
Jake....don't mean to be rude, but shouldn't you, as buyers advocate, know exactly what to look when buying for growth ? I'm looking for my first IP and am considering using a buyers agent as I'm time poor, and the number one question i would expect them to answer is the very question you post...I gotta tell you, you scared the **** out of me and now am seriously thinking it twice before paying over 10k to someone who is supposed to know the market inside out but is asking fundamental questions in a users forum.
Jake is just asking other people’s opinions, I’m sure he has his own strategy sorted out. Don’t be scared of buyers agents etc.
My main rule is scarcity or rarity, if you can’t easy replace it its got to be good.
2/ Big Multi National Retail & Commercial type companies. ie Major Shopping Centres, McDonalds Hungry Jacks, KFC, Bunnings, Harvey Normans, Good Guys, etc. These companies spend $Millions on market research before going into and setting up shop in an area. If there was no current or immediate future demand for their products and services they would not be moving in, so leverage off the back of their research.