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Spotting the perfect investment property for your needs

On Aug 22 2013
Tagged as:
  • Investing

Property investment can be a difficult nut to crack. There are so many different potential factors ...

Property investment can be a difficult nut to crack. There are so many different potential factors to take into consideration that if you aren't paying attention, you could miss the opportunity to purchase the perfect investment property.

There are some tell-tale signs that can indicate when a suburb or region is about to experience a property boom. After all, timing the purchase of your investment property with the market conditions will be beneficial in the long run for your returns.

The thing to remember about property is that it doesn’t exist in a vacuum. To take property investment seriously is to begin following the news - things like mining and industry, international production, the country's economy, the state of tourism and immigration, the federal elections and more all have influence over the real estate market.

The challenge comes from knowing how to read these signs and making an educated guess about when the right time is to emerge into the real estate market.

For example, if there is news about an upcoming housing shortage, low vacancy rates and a stable economy, it could be a good time to consider taking the plunge and investing in property.

But if there are falling auction clearance rates, reductions in median house prices, or increasing interest rates, it might be better to steer clear of the market.

However, it's good to remember that investment isn’t an exact science, and there could be merit in looking into options that go against the norm. Who knows, perhaps you'll find a gem while everyone else is ignoring the area?

Doing market research is also a good way to predict where the next property hotspot could be. There are a number of monthly reports released by industry analysts like RP Data which often have the changes in the capital city markets. These are listed month-over month, as well as the more encompassing year-on-year changes.

Any areas that are populated by trendy cafes or local lifestyle spots are also good guesses for potential investment property.

Due to the high demand of these properties, if you identify an affluent area early in its development, you could establish yourself for the long haul and make some fantastic returns.

Couple this with more accurate property advice from local real estate agents and you could be well on your way to securing a fantastic investment property.

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