Research is the hardest part of any real estate purchase. Knowing what to look for and then trawling through tens or hundreds of properties is both tiresome and tricky. To help you out with your next property purchase, let's have a look at a few key factors you might want to prioritise with your research technique.
Even if you are planning to be an owner-occupier, having a look at rental returns in the area and the property itself (if relevant) can be valuable. By considering the value of the property as compared with the rental income (or potential rental income) gained, this could indicate whether you have a bargain on your hands or if it's best to stay away.
Location, location, location
The old saying still rings true in 2020: location is vital. It is important though to keep in mind that the general market feeling about the area shouldn't be the only deciding factor. Also take into account things like public transport, access to amenities (doctors, supermarkets, department stores, schools etc.), surrounding parklands, and so on. If you are an owner-occupier, you will likely know what you want in an area and hence can be selective. If you are planning an investment, knowing that your new property is near a train line or other key piece of infrastructure will assist in driving the price up over the long term, especially if you can identify nearby areas which may be undergoing development or regeneration and thus may see a boom in business, making your location ideal for potential commuters. Therefore regardless of your intentions, location is key.
Days on market
For investors, this is a key metric to understanding whether a suburb is increasing in value or not. If a variety of properties in the area spend a lot of time on the market, it is likely that the area isn't particularly popular or has some drawbacks, and hence isn't going to be skyrocketing in value; at least not any time soon. For owner-occupiers, this could be a sign to buy, since prices will likely be lower due to the lack of popularity. This is doubly true if the area fits your needs perfectly. On this basis, looking at the number of days on market could land you a better price.
We have covered just a few key signs of a good property investment today; rental returns, the location of the property and how long properties in the area have been on the market. Of course, real estate sales happen every week and you need to consider the property that suits your needs best. For assistance from the most trustworthy real estate agent in the business, get in touch with House Estate Agents today on 07 4580 0811.