The property market is a volatile space that sellers, investors, and buyers find themselves in. One minute you have a brewing property hotspot developing in a certain part of the country, the next it cools down or moves elsewhere to start a boom. If you are interested in a property, the first step is to follow the property market which gives you a good indicator of where to invest your money. But how can you find a property market that is bubbling under ready to blow into a hotspot?
Observing the market trends is a start
It doesn’t matter what interests you might have when it comes to property, watching the various Australian property market trends can give you good insight. Despite the emphasis being placed on the capital cities on property market trends, there are various markets all over Australia that heat up while some cool down. Focusing on an area can help you channel your time and money to find upcoming hotspots to invest in.
You can rate a market based on its income and population growth which influence its performance. You can gauge the return you will make on investing on a property by observing its year on year growth by the percentage in which it grows. If you invest in a property for $340,000 and plan to hold onto it for the next 15 years in a market that experiences a 4% p.a. growth in one market, but then another market is promising a 6% p.a. growth on the same set up it can make a difference in how much you pocket.
How long properties in that area stay on the market
For both investors and buyers, this is a crucial aspect of finding out whether your property will be an investment or a potential dud. Analysing data in each region and area can be tedious, but thankfully for the average buyer on the street, there are agencies and people who make it their lives work to simplify this data into something that is useful.
Reports on upcoming property hotspots can be found on websites such as Corelogic and other estate websites. This can ease your search once you have an idea of how much property you want to invest in. Buyer activity coupled with the number of sales that are made in an area is a good indicator of how that particular market is performing. The faster a property sells in a market the more likely it is to be a hotspot.
Recent data by Propertyology revealed that the fastest selling area was the city of Clarence in Tasmania with an average selling period being 10 days. Propertyology revealed that the reason why particular markets will experience growth is due to tightening markets.
Property development that drives up the value
When investing in a house you might want to look at what is planned to be developed around your neighbourhood. Developments and infrastructure can play a part in bringing up or tearing down the value of your property. Big projects that improve a suburb or an area is bound to increase employment opportunities and population which is good for business.
For example, Financial Review revealed at the beginning of this year the various expansions and upgrades that were to be carried out across various cities in Australia. The Adelaide airport is set to be expanded by the government under a $1 billion project which will be spent in the next 5 years.
The upgrading of amnesties and infrastructure makes a place more desirable for buyers and investors to put their money into. Therefore, it is always important to find out if there are any developments that are bound to happen near your property before buying.
You want to prepare yourself financially for the right home loan for when the opportunity presents itself to you and it is time to invest. Keeping an eye out for competitive deals by comparing your home loan is a good way to bag a deal that will not dent your investment along with your pockets.