For some property investors, rental yield – the income a property generates as a percentage of its value is the key priority. For others, the bigger goal is capital growth.
While no one can perfectly predict which suburbs will rise in value, there are certain signals that suggest strong growth potential.
In today’s market, with low housing stock and high demand, it’s more important than ever to do your research before buying an investment property. Here are four indicators that a suburb could be on the rise.
Suburbs where buyer demand is likely to exceed housing supply often show strong growth prospects.
Start by looking at available land – is there much space left for new housing developments? If not, limited supply may put upward pressure on property prices.
Population growth is another factor. If more people are expected to move into the area, the increased demand for homes can drive values higher.
Metrics like average days on market, vendor discounting, and auction clearance rates can also help measure current demand levels.
Government or private investment in infrastructure can transform a suburb’s appeal.
New transport links, schools, hospitals, or retail hubs can attract more people, create jobs, and boost housing demand.
Research upcoming projects online or check with the local council to see what developments are planned in the area.
When higher-income buyers move into a lower-income area and start renovating or investing locally, gentrification takes place. This often pushes property values upward.
Indicators of gentrification include:
If you see these changes happening, the suburb may be on its way to stronger growth.
Price growth in one suburb can often spill over into nearby areas.
If a neighbouring suburb has already experienced strong capital growth, check the more affordable surrounding areas. These suburbs may still offer untapped potential before prices catch up.
Ready to invest?
If you’ve spotted a suburb with strong growth indicators and you’re considering your next move, I can help arrange the finance to make it happen.
Get in touch today to explore your options and take the next step in growing your property portfolio.
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We’ve worked with clients across Australia to access the different first home owner grants (FHOG) as well as the various stamp duty and other concessions that may be available depending on which state you are in. We can talk you through your various options as well as helping you compare things like buying vacant land vs. an established home.
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