An investor’s dream: buying before the boom and how to do it

No matter whether you’re a seasoned investor or it’s your first time dipping your toe into the property management market, everyone wants to buy a fantastic home at a great price. Typically a full property cycle can take up to 10 years for completion, with some zones experiencing a shorter 2 to 4-year buying cycle, so for those of us impatiently waiting to buy cheap in an area we love before prices surge, judging the timing right mightn’t seem possible. So how do you get in before the boom with no buyer’s regret?

1. Investigate the growth

Are there areas for potential growth in your desired area? Is public transport expanding? Are new schools due to open to cope with the growth? Are new recreational hubs, café strips and restaurants popping up? Is the local shopping centre getting an overhaul? Or conversely, is growth stalling? While the most recent Census data won’t be accessible as yet, browse the ABS website for statistics like population for data on current and emerging trends.

2. Observe government movements

Council may be choosing to spruce up local parks, roads, pathways and other facilities or amenities, which can significantly renovate and change the appeal to a suburb, sparking an emerging increase of interest in the area.

3. Analyse the suburb profile

How happy are the residents to be living in your pursued area? When qualifications amplify, wages increase, and the value of the residents’ profile is high, then it’s a great sign of a valued cash flow area. Analyse the vibe of the area to determine the feel for yourself and decide if you would be comfortable living there – and if other tenants would, too.

4. Determine vacancy rates
   

Falling vacancy rates is a great sign that tenants love the area, and that there is high demand for property. The lower the vacancy rates, the better chance of property growth in your elected area.

5. Check auction outcomes

If the area you’re looking in is prospering, then successful auctions and shorter terms for which properties sit on the market – without vendors lowering prices to get a sale – will be key indicators of strong suburb demand.

It is worth keeping in mind that capital cities tend to behave on different cycles, so if one area isn’t faring well, then opportunities in another part of Australia could be a completely different story. Sticking to nearby areas you know and love within Brisbane is advantageous because you can keep tabs on your property more frequently and conveniently before branching out interstate with confidence.

For any investor, having the ear of a professional dealing with Brisbane property day in day out can not only give you piece of mind when navigating the real estate market, but seasoned advice to keep you on the right track. Why not contact the team at Hicks Real Estate today, or call us on 07 3355 6845?