How to pick a great suburb? Or where should I buy are essentially the same questions. Unfortunately many people choose where to invest using the rule of familiarity. They choose a property that they know, one that they can see, it may be within the same suburb they live, it might be where they holiday, it may even be in the same street they live.
This gives investors a false comfort, just because you can see your investment property every other day does not mean you have picked the right area to invest in.
We have talked before about using macro and micro indicators to guide your decision about where to invest and today we are going to look at some of the characteristics of a great suburb.
Suburbs that are close to everything
Look at suburbs that are close to public transport, including trains, buses and light rail. Is the suburb well serviced with things like hospitals, medical centres, and childcare facilities? Is it going to be fun to live there? Are cinemas, playing fields, and gyms?
How does the suburb relate to its neighbors?
How does the suburb you are looking at relate to those around it? If wealthier suburbs surround it then your suburb will feel the ‘flow on’ effect of people not being able to afford to rent in that area. Your suburb overtime will feel the uplift effect of being surrounded by great suburbs.
Are people talking about the suburb?
Here is where you need to do some research and look to see if the suburb is being talked about in terms of further development. Are there plans to build schools, shopping centres or recreational facilities?
Are governments looking to upgrade and improve public transport or major roads?
Any development in these areas will increase demand for housing in both the short and long term.
If you have a question or would like to know more about how to pick the right suburb please join us at our next seminar or contact me, I would love to talk to you firstname.lastname@example.org