Gunning for Growth
While the property market has changed greatly in the last year, there are still opportunities for growth if you know what to hunt for.
The fast-paced capital growth enjoyed across Australia for many years by property owners has slowed dramatically in the past 12 months. Current predictions are that prices will track sideways across many of the markets for some time.
There are, however, still opportunities to achieve capital growth, but it’s a matter of buying smartly – and buying smartly means you need to understand what pushes prices upwards.
Put simply, property prices tend to rise in locations experiencing growth across a range of areas and the best returns are usually found in these markets that are poised for growth.
Employment is a major indicator of price growth as a strong job market drives population growth, which in turn fuels demand for real estate.
Of course, no city or town will do well without quality infrastructure. Strong investment in infrastructure or high quality infrastructure already present is usually a good indicator of potential investment opportunities.
Suburbs earmarked for urban renewal should also be on your radar. With demand for inner-city living growing exponentially, many suburbs in capital cities, which may once have been undesirable, are now locations of significant redevelopment, thanks to their prime position. Such a transformation can have a huge impact on real estate prices.
A state or local government’s policies and plans can also be a strong influence on an area’s growth prospects. Keep an eye out for any announcements concerning development and plans for growth.
Also keep in mind that one of the biggest drivers of property demand is a growing population and areas experiencing an increase in residents will often see real estate prices rise.
Finally, remember that property is a long-term investment.
So long as you do your research and buy well, your property will grow in value – you’ve just got to be patient and give it time.
Source: Lending Services Victoria