Growth or upwards pressure on prices – these are the key things we want to look for when we are looking for that market to buy our property. So along with timing, which is vital, we want to look at what those factors are that are in that market that give us the reason and tick all the boxes and criteria for why we want to purchase property in that market to then see that price increase in value. And again, this is what 92% of investors have not done because they’re the 92% that don’t get past two or more properties: because they’re buying the wrong properties in the wrong market at the wrong time. They clearly haven’t looked at all these factors to make sure that they’re buying in the right market.
So the first one is land supply and demand. If there’s a shortage of supply then there’s going to be an increase in demand and if demand outweighs supply that is going to increase the value of property and push rents up. So we want to be finding out where the population growth is going to be the largest because that’s then going to put pressure on land supply and housing supply.
So population growth is the second one. We want to track where those population movements are going, where these people are coming from and why are they going there. So the reasons people might move to a location is for jobs, jobs and lifestyle. So the things that drive jobs are government decisions and projects, number three.
So we want to be able to track where those huge government decisions are and projects. Things like building a billion-dollar town centres, supported by transport infrastructure, sporting stadiums, new schools, hospitals, upgrades, new facilities at harbours, etc. We track all these things on government websites to build that picture of where these next boom locations are going to be.
So that’s the fourth one – approved developments and infrastructure. All these things support government decisions, drive population growth and put pressure on supply and demand and the fifth one is affordability. We want to see where those locations are that haven’t had any growth for a while, prices haven’t increased but meanwhile wages and salaries have been, so affordability is now huge in those locations, more people will be buying, again driving up prices. The more people that are buying, got more money to spend, putting pressure on supply, increasing demand and again putting pressure on housing prices and rents pushing both those things up. If we ticked all those boxes in a location that’s the perfect storm to create growth for our property.
Education, medical facilities, shopping facilities, transport, community services, increased population growth and diminishing land availability. Take all those things, those seven factors, they all nest neatly under the five main factors and you can have your perfect storm for where to buy your property.
If you want to know how we can help you identify the best location to purchase your investment property and help you with that process just shoot as a quick email to firstname.lastname@example.org and we’re here to help. Hope to talk to you soon. Cheers.