Find Investment Property | July 2009 ‘If only I had the foresight to buy a property in that location’ is a regular complaint from many property investors. It makes sense to buy into the property investment market before its potential becomes common knowledge. But how do you work out where these invest property hotspots are? There are a number of predictable factors that influence investment property values. 1. Employment Opportunities Development projects that create jobs growth in employment such as industry, commercial parks, hospital facilities or even new prisons are a good indication of potential employment growth. Consider the effect of the Western Australia mining boom on capital and rental prices. 2. Urban Regeneration A location marked for urban renewal usually offers easy opportunities if you make your move early. Local governments are constantly providing funding for major transformations of run down areas Transforming these locations makes them more popular places to live and increases rental property demand. 3. Large Tertiary Institutions Certain areas close to tertiary education facilities in Australia’s major cities initially attract a large student population because they offer cheaper rental alternatives. Shopping and entertaining development, such as bars and restaurants then follows the growth in student, which, in it turn encourages population growth and demand for rental accomodation. 4. Watch for Urban Spread Look for areas that aren’t so popular, but are next to suburbs that have become hotspots. Once the popular location reaches the expensive part of its cycle demand will usually overlap into adjoining suburbs. 5. Transport Development Improvement in transport infrastructure is one of the major drawcards for investors and renters. Reliable fast transport links automatically add value to a property investment. Look for areas that have plans to improve local or regional transport. Key investment property hotspot predictors are: • The level of rental demand • Location close to primary, secondary & tertiary institutions • Improvements to transport links • Urban renewal plans • Easy access to retail and entertainment facilities • Easy reach of sports & recreational facilities and parks If you do your homework thoroughly you will make the task of finding your investment property spot much easier.
