First time property investors often ask about the best locations to invest in, and whether there are “golden” suburbs that they can buy into and be guaranteed a certain return. The answer to this is both yes and no: yes, there are definitely locations that all professional investors keep an eye out for, and no, there are no specific suburbs that can guarantee a return for property investors. Having said that, let’s look at the areas that first timers should be focusing on.
Inner City Locations
All the studies conducted in the last few years have found that suburbs that are close to a major capital city continue to see above average increases in property values, and rental demand. For example, the Australian Property Monitors Rental Report has found consistently that more and more young professionals are looking for properties to rent that are close to where they work, and close to entertainment, shopping and transport.
It is not surprising that when you drive through some inner city suburbs – especially in Sydney, Melbourne and Brisbane – to see the flurry of residential building going on. This is because developers know how to pick trends and understand where demand from owners, investors and tenants will come from. Areas with high levels of building and infrastructure activity should be targeted for research by all potential property investors.
Doing research on these up and coming areas can be easy – just monitor the local and national media, contact agents in the area you are targeting (many often publish useful newsletters), keep an eye on the websites of property developers you might know, and talk to professional property investment companies such as Ironfish to get the inside scoop on hot areas and upcoming opportunities in the market.
The other thing to keep in mind if you are looking at inner city properties is to look at brand new or off the plan developments rather than older established properties. There are many benefits to focusing on these type of new properties, and, importantly, renters in this market in the inner suburbs are looking for a certain lifestyle that the newer apartments can bring. Modern features and inclusions such as gourmet chef kitchens, entertaining balconies or terraces, flexible layouts, study nooks and facilities such as swimming pools or saunas, can all help to attract high value tenants.
Finding the right property in the right location can mean the difference between having your property fully occupied at all times with high quality tenants, or facing lengthy periods where you struggle to find tenants. Talk to the property investment experts, Ironfish, to find out how they can assist you with their experience, local knowledge and research, and even give you access to pre-public and pre-negotiated opportunities in the market.