For most investors the need to buy in a high growth area is high. The benefits from buying in ‘hot spot’ areas are many. Equity is built quicker, the value of the property rises faster and doesn’t drop and those wishing to build their portfolio can do so more efficiently.
Unfortunately, not every investor achieves this for any number of reasons. It could be perhaps that they did not investigate the area and statistics well first before buying or that they did not have a reputable team on their side giving them sound advice on their choices.
At Fountain Property Group we implement our tried and true method to help each of our clients make the best investment decisions possible, every time. Whatever your investment goal is: one property or many, we will assist you every step of the way in taking the leap to financial freedom.
One of the things we do to assist you is to keep our finger on the pulse of suburbs that are about to take off in value. Here’s what we look for.
If you don’t know, gentrification means there is a change in a suburb such as rent increases and property value. This is due to wealthier residents moving in and changing the existing demographic. When looking for growth areas it helps to look for gentrification.
Usually these areas did not have the best reputation previously but are gaining a better name because they are gentrified. New homes, renovated homes and more cafes or retailers are always a good sign that there is more money coming into the suburb.
If you missed out on buying in a high growth area then we recommend looking at the surrounding suburbs. This kind of instance is where our expert help comes in handy as we will know where in the cycle the property market is.
Supply and demand
Supply and demand is always a factoring price and growth in suburbs. If a suburb is in high demand but there is no room left to build you will start to see property values increase. These areas have a high amount of renters looking to move into the area, and if the age range and income is right it will be very likely to gentrify soon.
If a large shopping centre, new hospital or other infrastructure is going up then this area will be very likely to take off. These kinds of buildings will bring more jobs and the closer people can live to their jobs the better, meaning a higher rise in renters.
There are many more factors that come into play when buying in the right area and we can help you take the best shot. Contact Fountain Property Group today for more information on starting your investment dream with us.