How to identify a possible ‘ripple effect’ market

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First published 12/08/2012

Step 1. Identify ‘hotspots’ with high recent growth, preferably in the last 12 months

Step 2. Find the neighbours

  • Go to Google maps or some similar service and find your ‘hotspot’
  • Jot down the list of immediate neighbours
  • Jot down the next couple layers of neighbours as well, since the ripples will often extend out later on in the cycle

Step 3. Chart each suburbs’ growth

  • Go to www.youinvestment propertymag.com.au and enter each of your suburbs’ names paying special attention to last 12 months of growth
  • Compare your high growth suburb’s recent spike to its neighbours’ recent performance – the bigger the difference the greater the potential

 

Step 4. Check for ripple indicators

  • Investors still need to check that the drivers of growth will likely have a similar effect on the neighbouring suburb, so it is important to check for demographic and lifestyle similarities
  • Also, beware of large development in the area – this could be a ripple killer

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Top Suburbs : werribee , tiwi , melton , balga , st peters

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