The Ripple Affect
If you can’t afford to buy into a high growth area (as you have just missed the mark this time around), you might still be able to buy into the area by checking the surrounding suburbs. This requires timing, so you need to know, which phase of the cycle the local property market is in to maximise your chances of riding the wave of growth.
Top tips for finding areas before the ripple of growth hits:
- Measure property values by comparing the median prices of adjoining suburbs;
- If there is more than a 5% variation, chances are the suburb next door will be playing catch-up;
- Closely monitor median price trends on a quarterly basis. Once you are certain the cycle has kicked off, look for properties within your budget that are as close to the growth as possible. Subscribe to property alerts through real estate portals for properties coming on to the market;
- A good rule of thumb when buying in the capital-city suburban markets is to buy within 10 km of the CBD; growth is virtually assured to ripple this far out during a cycle.