As you well know, when it comes to property, location is everything. Doing your research to make sure you are purchasing in the right area will help ensure you are investing in property with the most opportunity for success.
What Makes an Area the Right Location?
No matter if you are purchasing a property to live in or property as an investment, both are an asset. And, it is essential that you adequately research locations before buying. Current Australian property market data that provides figures on the latest trends is available to you online as well as through development professionals and local real estate agencies.
A good location will have capital growth potential and will provide you with the best return on your investment. A savvy property buyer will research the best areas with the most capital growth potential, and then concentrate on finding a property in those areas that fits their budget.
Focusing on popular areas has potential, but so too do the suburbs adjacent to already popular areas. You need to consider what is located nearby: good schools, public transport links, shopping centres, amenities and access to the CBD. All of these will majorly impact the potential of an area and the properties within it.
What is the Right Price for the Area?
Another key aspect of area research is that it gives you the tools to understand what the right price for property is, so that you don’t overspend. By researching sale prices of comparable properties in the area, you can determine the accurate range to spend on your potential property purchase. Spending too much on a property is going to severely affect your return on investment when you sell.
All of the same considerations listed above will also directly affect a property’s pricing. Doing your research and seeking advice from Australian, Queensland, Brisbane or Gold Coast based industry professionals will ensure you have the best potential for success on your home purchase or property investment.
If the area you’re researching looks like a great location to invest in, but its success has affected property pricing to a point that it is no longer within your budget, you should consider a suburb adjacent that is better suited or look into a different area altogether. Overspending can seriously harm your chances of success should you have to sell prematurely due to bad cash flow.
If you are purchasing property as an investment, you also need to determine whether or not your potential investment property is negatively or positively geared and if this will suit your circumstances or not. If it does not suit your budget or investment goals, then you will want to switch your focus on to a property more suited to your needs.