How to Pick the Next Boom Suburb
The golden rule in real estate is Location, Location, Location! However, it is easier said than done. So how can you pick the next boom suburb. Well, you should aim to buy low, watch property values appreciate, then sell high. In order to maximize your chances, do a little research and some legwork before you buy.
Scout around for suburbs which have yet to experience high growth. Make comparisons in prices with neighboring suburbs and the region as a whole. Are the houses similar? Does the suburb have an equivalent access to good schools, shopping and transport?
Examine the demographic trends of the suburb. Suburbs undergoing urban renewal often experience rapid growth, high demand and increased prices. Be beware of fad suburbs and always look for important characteristics such as housing quality, infrastructure and location.
The 5 Tips for Maximizing Your Choice of Suburb
1. Shop till you drop
Comparing price rises across a number of adjacent suburbs can indicate which suburbs are hot and which are not.
2. Look for the boom suburbs and then look next door
Neighbouring suburbs often have similar housing styles, amenities and streetscapes. While they may be a few kilometres further out, housing is often much cheaper. Look out for suburbs that are near the city or water with abundant period homes ripe for renovation that would appeal to affluent buyers.
3. Speak to real estate agents and check out the newspapers for auction results
Find out the clearance rates, the number of bidders at auctions and the difference between the reserve and selling price. These all indicate demand and can tell you if a suburb has taken off or is about to.
4. Can you see yourself living there?
Check out crime rates, types of industry, employment, commuting times and recreational facilities. Is the suburb well serviced by roads and public transport? What are the major suburb development upgrades that the local council is planning to undertake?
5. Look at the bigger picture and forecast
Research into social trends and how they affect the way we live. What is the trend for the next decade?