Real estate can be lucrative as an investment avenue. But beware; it could also be a money pit. If you are looking to invest in a property in the hope of flipping it for a profit, leasing out, or even for long-term personal occupation there is an absolute need to ensure you are buying into the right neighborhood.
Failing to research the neighborhood you intend to invest in can mean your investment may lose value over time. It may become very difficult to divest from the property when you finally decide to sell. Let’s look at signs you can seek out in any Australian neighborhood before purchasing a property there;
What do you know about the area you intend to buy into? Have you done enough research about the area around the street your chosen property is located in?
If you are buying for investment purposes, skilled and experienced property buyers will advise to only but into the area, you will be comfortable living in yourself. There is good wisdom in this advice:
The fact you may expect to flip the property after renovation or even rent it out means you will want to know if there will be any demand at all for your property. If you would not mind living in the area yourself you will at least know there is a demographic group looking to buy into the neighborhood, even though you may not know how big that potential market is.
A buyers’ market is a time in real estate where it is most attractive for people to buy property. Usually, this is when prices are at their lowest. Such a scenario is often a result of too many property units available for sale in the market.
Too few buyers on the market often mean property sellers are less likely to ask for high prices and often have to lower their prices to force a sale. To excite the market, finance providers are also often pushed to lower mortgage rates to encourage housing loans’ take-up.
Buyers’ market conditions vary to the point you have to watch and decide when it is reasonably attractive to buy property. Waiting for prices to hit rock bottom may also result in prices rising sharply before you can even make an offer.
Savvy buyers don’t buy into old suburbs where the infrastructure is falling apart. If there aren’t enough people, especially millennials, showing an active interest in a particular property investment area there usually is a valid reason to it.
Reasons, why the Australian suburbs you are interested in buying a property in aren’t popular with buyers, could be a lack of job prospects in the area or even the recent downturn in fortunes in an industry or company that used to employ a lot of people. Such a state of affairs means property prices may start to fall and that there may also be unlikely to rise anytime soon.
Look out for areas experiencing booms due to, for example, a recent discovery of a prized mineral or a major manufacturing plant opening up in the area. Other attractions could be a vibrant cultural, sports, or culinary scene.
The flip side could also be that property prices may already have started to rise unsustainably. In that case look to invest in areas around the existing neighborhoods where the town is likely to expand as it grows.
Of course, as we have discussed already, a vibrant culture and growing employment opportunities in the area you intend to invest in are some of the best signs an area is an attractive property market. But what if there aren’t enough of these in the area?
Sometimes all there is to a town is potential that it can mature into a very popular destination and lucrative market for real estate investment. For one, and to attract any interest in a town, there needs to be significant investment in the area’s infrastructure and social services.
Even with popular attractions available, if an area lacks basic infrastructure like good roads, reliable electricity, quality sports, education, and health facilities, people may still not be tempted to want to settle in the town.
However, should the local authority be able to attract enough investment in these areas, interest for real estate buyers will certainly improve. You will thus fancy chances of investing in the area’s property market or even settling there yourself.
After all the above have been considered, you could still undo all the effort you have put in researching your property investment destination by not choosing a trustable real estate agent to work with. Or, you could make the classic mistake most newbie real estate buyers in Burnside Heights make of thinking they can forgo the need for an experienced real estate agent.
This is often a fatal and costly mistake. Real estate can be a minefield, where conditions change constantly. Yes, you may have done your homework and think nothing could go wrong, especially if you are dealing with a buyer-friendly market. But never underestimate the value of a trustable real agent, of which there are many in Burnside Heights and most other cities in Australia.
An experienced real estate agent Burnside Heights knows when and how to close a sale while, because you are not experienced enough, you may dither, pushing for an even lower price until you frustrate the seller into considering other buyers.
Also, a trustable real estate agent with enough experience will have contacts with the best people you may need to force a sale. They are also experienced in dealing with local inspectors and other real estate agents. You are certainly going to be outsmarted as an inexperienced buyer sitting across the table from an experienced real estate agent Burnside Heights acting on behalf of the seller.
Are you in Burnside Heights, Australia and are looking for a residential or commercial property unit to invest in?
Vish Sidhu is a trustable real estate agent with many years of property buying and selling experience in Burnside Heights. He is highly experienced, knows Melbourne well, and is determined to get you the best deal possible. Give him a call today.