Investing in real estate is extremely financially alluring, isn’t it? Real estate is something tangible and “real”, as opposed to shares in the stock market. Also, there is always going to be a demand for it since owning a home is usually considered as one of the prerequisites for a stable and happy life. However, in order for you to be fully satisfied, you have to choose a suburb with the highest capital growth to really get your money’s worth. Here are several tips and tactics you should consider while searching for the perfect property.
Before you begin your quest, be prepared to think outside the box. First of all, you needn’t like the home or the suburb you are buying, i.e. these don’t have to appeal to your personal taste or requirements. The point is to buy a house whose value is expected to go higher in the years to come, and with the current home loan interest rates, there should be plenty of customers.
Secondly, don’t have your heart set on one particular suburb if the figures are showing that prices in some other area are going to skyrocket any time soon. Therefore, be open to all opportunities. Make sure you invest some time in investigating current rates and figures to get the best overall picture of the situation.
Pick the right city
The whole search begins with choosing the perfect city. The prices for identical houses (regarding the size) and within the same distance from the city center vary greatly depending on the city you are focusing on. Look for the ones with the greatest increase in population. According to the official statistic reports, Sydney and Melbourne, for example, have experienced the highest surges in demographics, which in turn have had a positive effect on the real estate market.
Go for the less popular
Usually, the areas closest to the city center are the most popular. Nevertheless, you shouldn’t get carried away, since it is usually the houses in the suburbs, that on average are sold faster than a house in the immediate proximity to the downtown area.
Check the renting prices
The rent is also a reliable indicator of the prices you can expect for the real estate in mind. Once again, steer clear of the areas renowned for the highest rents in the city. It should come as no surprise that future buyers are put off by high prices and rather look for their new home in those areas that are known to be more affordable. Naturally, there are always exceptions, but if you wish to sell your property fast enough, apply this piece of advice.
Information on infrastructure
Once you narrow down your search to a couple of areas, pay a visit to the local council and do some more research. Examine if the location in question is going to become a construction site of a new road, a big shopping center, a new school, or perhaps a new train station is to be built nearby. These and similar projects tell you there is going to be a significant rise in the population, thus increasing the demand for housing options.
When you have finally pinned down some of your favorites, it’s time you checked what is usually the deal breaker for many a house hunter – maintenance costs.
High utility bills can repel a lot of prospective buyers, and you should follow suit. We are living in a time when green homes are in high demand, and one of their major advantages is that they are extremely energy saving and the trend for green home purchases is only going to continue.
Everybody loves seeing their investment pay off. Moreover, if you bear in mind these tips, don’t be surprised if you get even more than you bargained for.