I was thinking about if I should focus on suburbs where there are mostly investors but not much owner occupiers vs mostly owner occupiers but minimal investors.
My thoughts are:
Owner occupied suburbs
Pros:
Owner occupied suburbs, price tend to be higher because people buying their own home with emotions, they are willing to pay premium for their dream home.
Environment seems to be nicer as less units/apartments and the street usually look nicer too, they look after their garden and won't put a bunch of rubbish in front of their front yard.
Cons:
inconvenient as these suburbs are usually further away from train stations and other shopping centre etc. and owning a car is almost a must other wise they might need to catch a bus than change train.
It might take longer to find a tenant but usually the tenants are quality tenants as rents are usually higher.
Investors Suburbs
Pro:
High turn over of properties, extraordinary growth in % in property price due to high demand of mixed investor and owner occupier.
Usually they are pretty close to train stations.
Cons:
Mostly these suburbs are the less desirable suburbs, and because most of the populations are renters it also create the over supply issue when one need to let their property.
Dominos effect when the economy goes down, as most investors tends to leverage to the max, when they are in financial stress they need to start selling off their investments, when a bunch of investors starting to get desperate price will go down and create panic selling for the others.
My thoughts are:
Owner occupied suburbs
Pros:
Owner occupied suburbs, price tend to be higher because people buying their own home with emotions, they are willing to pay premium for their dream home.
Environment seems to be nicer as less units/apartments and the street usually look nicer too, they look after their garden and won't put a bunch of rubbish in front of their front yard.
Cons:
inconvenient as these suburbs are usually further away from train stations and other shopping centre etc. and owning a car is almost a must other wise they might need to catch a bus than change train.
It might take longer to find a tenant but usually the tenants are quality tenants as rents are usually higher.
Investors Suburbs
Pro:
High turn over of properties, extraordinary growth in % in property price due to high demand of mixed investor and owner occupier.
Usually they are pretty close to train stations.
Cons:
Mostly these suburbs are the less desirable suburbs, and because most of the populations are renters it also create the over supply issue when one need to let their property.
Dominos effect when the economy goes down, as most investors tends to leverage to the max, when they are in financial stress they need to start selling off their investments, when a bunch of investors starting to get desperate price will go down and create panic selling for the others.