Residex believes there are at least 5,000+ suburbs in Australia that you should potentially consider when buying a house or a unit as an investment. That may sound daunting, but it is easy to narrow down the list by following a few simple rules.
1. Think about the long-term
Magazines, newspapers and online articles or blogs about investment are a great place to start your research as they offer some useful tips and insights on investing. Remember when reading to be wary of selected words and jargon such as ‘hot spot’. When a suburb is being called a ‘hot spot’, this is to do with its current status. However because investment is a long-term commitment you need think about the future. Try to select an area that will perform better than the median area in a market over the longer term.
2. Don’t guess or take risks
Well-positioned properties located near good transport, infrastructure and services tend to produce long-term quality outcomes. Always bear this in mind when looking at different suburbs.
3. Get organised
Create a spreadsheet that lists all of the suburbs in the state you’re interested in, identifying the median value, historical growth rate, median rental, sales volumes, dwelling numbers and median incomes for each. This will allow you to narrow down your list according to the criteria that you set.
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