Arnold
CibbuanoProperty Buying Tips - More Location Factors
June 7th 2006 00:58
I thought I’d add some more ideas about what determines if a property is situated in a good location.
You want to make sure that your property is in an area of high demand… or even better, forecast to be an area of high demand. Any area which is in low demand is going to be hard to sell and a vendor will be in a position of lowered bargaining power when the time comes to sell. Be aware that areas that are currently in low demand may change to high demand with time. A great example is the inner city suburb of Redfern. Once upon a time, Redfern was considered a dangerous place to live and not a preferred residential or investment area. It was a hub of crime, drugs and there were often news reports of trouble in the area. In recent years, this has totally changed. The area has become popular for its bohemian qualities and caters to the culturally minded. There’s an assortment of local galleries, playhouses, artists, live music venues, specialty shops and niche industries. Combined with the proximity of the city, Redfern was a property investors dream waiting to happen.
From an investment perspective, you want to make sure you purchase into an area before it hits its property boom and becomes popular with local residents. This tactic should provide you with the greatest yields and is a key philosophy for any investor. “Buy when undervalued, sell when overvalued.” So what are some indications that an area has development potential or is on the verge of becoming the next big thing?
1) Look at surrounding infrastructure and public works or developments.
2) Look at local businesses and their developments in recent times.
3) What is the market saying about the area? Are more people moving into the area is there a high demand at auctions? What have been the local auction and sales results been?
4) Are there any newer housing developments in the area? If you can spy a few property developers moving into the area and cleaning things up, its usually an indication that others are going to follow suit.
I’ll elaborate on these ideas over the coming weeks.
You want to make sure that your property is in an area of high demand… or even better, forecast to be an area of high demand. Any area which is in low demand is going to be hard to sell and a vendor will be in a position of lowered bargaining power when the time comes to sell. Be aware that areas that are currently in low demand may change to high demand with time. A great example is the inner city suburb of Redfern. Once upon a time, Redfern was considered a dangerous place to live and not a preferred residential or investment area. It was a hub of crime, drugs and there were often news reports of trouble in the area. In recent years, this has totally changed. The area has become popular for its bohemian qualities and caters to the culturally minded. There’s an assortment of local galleries, playhouses, artists, live music venues, specialty shops and niche industries. Combined with the proximity of the city, Redfern was a property investors dream waiting to happen.
From an investment perspective, you want to make sure you purchase into an area before it hits its property boom and becomes popular with local residents. This tactic should provide you with the greatest yields and is a key philosophy for any investor. “Buy when undervalued, sell when overvalued.” So what are some indications that an area has development potential or is on the verge of becoming the next big thing?
1) Look at surrounding infrastructure and public works or developments.
2) Look at local businesses and their developments in recent times.
3) What is the market saying about the area? Are more people moving into the area is there a high demand at auctions? What have been the local auction and sales results been?
I’ll elaborate on these ideas over the coming weeks.
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