Shopping for your new home or next investment property? When you’re in the market for a new piece of real estate, finding the right location is crucial to ensure strong long-term capital growth – so we’ve rounded up some advice to help you locate the best possible spot!
1. Know your budget
For most buyers, your budget dictates which areas you can afford to live in or invest. The best way to determine your budget is to meet with a mortgage broker or lender and obtain a pre-approval.
2, Narrow down your options
With your budget locked down, you’re in a position to choose from a short-listed number of suburbs where you can purchase your desired property within your price range. Call agents in the area, ask what you can buy in their suburb within that price range, and if you can’t afford that areas ask which suburbs nearby will offer the type of property you want in your budget.
3. Map your suburb
Most suburbs have preferred pockets. To best understand the suburb you’re exploring, take a map down to the local estate agent’s office and ask them to map out with a highlighter the different ‘pockets’ in order of popularity. In time, the suburb as a whole will gain in value and the less sought after pockets will become more popular, as the preferred pockets rise rapidly in price.
4. Explore neighbouring suburbs
Neighbouring suburbs offer great options for homebuyers and investors. For example, if you go to your favoured suburb and find that you can’t get the type of property you want in your budget, move to either side of that suburb until you find one that suits your budget and offers the qualities and features you’re seeking.
5. Follow the infrastructure
Infrastructure drives property prices, which is why experienced investors follow infrastructure trends. Look at where the government is upgrading infrastructure, as it is a sure sign of an up-and-coming hot spot.
6. Isolate lifestyle attractions
Areas that offer lifestyle attractions are favoured by buyers and renters when compared with other suburbs that offer fewer amenities. Walking tracks, large family parks and bushland, creeks, beaches and small community villages all offer unique points of difference.
7. Water and city views rule
Enjoying water or CBD views is a major plus for any suburb. In Seaford, Victoria, for example, buying on the beachside of the freeway commands an additional $100,000 more than similar properties on the eastern side of the freeway.
8. Hang where the locals hang
When investigating a new area, ask the agent why people like living there. Then, pop down to the suburb’s most popular spots, whether that’s a local family friendly picnic area or coffee spot, and observe the type of atmosphere and people who are there.
9. Transport is important
Regardless of whether you live in the inner city or outer areas, transport is important. The more transport options are available in a suburb, the more valuable the suburb will become over time.
10.: Don’t listen to the naysayers
There are many suburbs across every state that locals will caution against buying in. But sometimes, having a fresh set of eyes without knowing about a suburb’s ‘stigma’ can work in your favour, because you’re looking at the suburb based on the fundamental merits that make a suburb valuable.
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