We have talked a lot about what you should look for in a suburb when you are investing. So I though it might be nice to have a quick look at some the things you want to look out for or avoid.
A lot of properties for rent
One the telltale signs of a suburb to avoid is one that has a lot of properties available to rent. This suggests there is either an oversupply of rental properties and or the area is just plain unattractive in terms of wanting to live there.
Areas with a single industry
An area with a single industry is one to avoid. We saw a lot of this with the mining industry in Western Australia. Small towns became very big towns when a mine opened or expanded. Sure, some of the rents being achieved were very attractive, however, if anything happens to the mine the town shrinks back to where it was.
You want to be looking for areas with multiple industries. This spreads the risk and helps to create stability.
If people are leaving an area and year on year the population is shrinking you should be hearing warning bells. Make sure you look at the population trends over the past decade or so and get a good understanding of why this is happening.
These are just a few of the things to avoid if you have a question or would like to know more about investing in property join us at our next seminar or contact me, I would love to talk to you firstname.lastname@example.org