Not where to buy - but how to look?

[hamm]

Hi peeps,

Discovered this forum a few weeks ago in my search for information on where to buy my first property (PPOR).

I currently work FIFO to Perth and so am looking around Perth for a house to buy. To maximise my FHO incentives I am looking for a place around the 500k mark and want to buy something with highest long term capital growth.

I was hoping some of you guys could give me some tips on how to spot a suburb / area / house that is going to have solid growth. What are these buyer's agents really looking at when they promise good areas?

I know it's not that simple but some tips / advice / rules of thumb etc on what to look for would be greatly appreciated!

Specific example suburbs would also help out


Thanks!

 

[Mick C]

Hi Hamm,

I dont have any Specific Suburbs i can give you, as i don't invest in the SA market- im more a NSW, ACT, QLD and VIC person

However the following are some common treads to look for if your looking for "growth";

1. Fringe suburbs - These are areas that are JUST outside known and developed areas ( CBD and metro)
2. Growth Drivers - look for places where drivers exist; such as Work hub, Hospital, attractions, University and good school and lifestyle ( cafe etc...)
3. Work with the Suburb and deal; ie if a particular suburb is growing in population ( check council population prediction + local knowledge) and there are a lot of new apartment and development...then buying a older piece of land is a sure winner if you buy in the right street
4. Local knowledge
5. Gratification - any changes that is undergoing in the areas; such as council approval for new developmental or new commercial building being built --- without change an area would not change/ grow ( good changes of course - that drives population or creates a growth driver )

Can go into a lot more, but the above 5 points are the basics.

P.s most common growth area's tend to have lower rental yield + takes time to grow; so be financial prepared OR have a diversified property portfolio; to spread the risk.

Regards
Michael

 

[normailson]

Hi Hamm,
5. Gratification - any changes that is undergoing in the areas; such as council approval for new developmental or new commercial building being built --- without change an area would not change/ grow ( good changes of course - that drives population or creates a growth driver )

Gentrification? However, the term relates more to demographic than infrastructure or population growth

 

[Mick C]

Gentrification? However, the term relates more to demographic than infrastructure or population growth

Sorry meant to type- Gentrification

It's 1am, should probably sleep now...

Regards
Michael