Booming Suburbs for Property Investment
How do you find the next booming suburb?
There is a huge amount of historical data available on property these days. House prices, rent rates, interest rates, macroeconomic data, microeconomic data and other financial data that all could be relevant. So how do you find the next booming suburb? What information should you be looking at?
Analysis has shown that the most successful piece of information in predicting the growth in the housing market is not interest rates, or population changes, or number of dwellings constructed or any other intuitive predictor of house price movements.
The best predictor is simply the historical trends in the market. In other words, the best place to look is the rear vision mirror. There are a number of free as well as commercial services in the market that give this information.
But what about the more strident investor, how can they peer into the future and find a new hot suburb or town or region? Some of the best performing suburbs in recent years have been in new areas, for example in the outskirts of Adelaide or Brisbane or Perth or in some of the booming coastal towns of Queensland. There is a trap however: some of the new hot suburbs are subject to economic factors which, if reversed, could cause prices to fall.
New hot spots are created by migration to that area usually on the back of some economic activity or major infrastructure like a port or new freeway or new shopping mall. These are important indicators but large capital cities are safer due to their multi factorial economies and consistent migration patterns. That’s why investors tend to stick to main capital cities and look for areas within these urban areas that have good a 10-year price growth track record.
Filed Under: Property Investment
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Fantastic !!!
Could you please be kind enough to give me some direction on who you use, suggest or recommend, would be a reliable source for some personal reading and research on the historical trends in a market.
Thank you
Hi Frank
I will put together a list of useful resources for you.
Best regards
Tracey
Hi Tracey,
Are you able to pass on this list of useful resources to myself as well?
I’d like to share them with my fellow group of property investors.
Thanks
Hi Quyen
No problems.
As soon i get it finished I will send it on to you as well.
Hope you have a lovely weekend.
Best regards
Tracey
Hi Tracey,
I would like to get this useful list information from you, and are they reliable source information?
What ( suburb/area in Melbourne and Adelaide )are you predicting to boom up in the next two year?
Cheers,
Hi John
Thanks for your comments, I have had so many ask for this information I have decided to do a post and make it avaiable to everyone.
Hopefully will be up next week.
Finally, my money is still on QLD as the state to watch mainly due to supply and demand.
Migration to QLD has a major factor in this and also coal supplies.
Even in this climate they are still estimating that QLD coal exports are expected to increase by over 250% in 2009.
Happy Investing
Hi Tracey,
Im not sure if you still are posting this information but thought it worth a shot.
Could you please provide me with info on Qld, Brisbane in particular. I completely agree with the boom factor still being in Qld but it seems that the prices just arent coming down as quickly as inticipated.
Any suggestions are welcome.
Regards J
Thanks a lot blogger for such a nice and informative blogging about property investment .A successful property investor makes money both in a rising and in a declining market. For example, during a rising market, property investors can release some of the equity built up over time to either purchase additional properties or to keep some money aside to be used at a later date. During a declining market, they buy lower-priced bargain properties I appreciate this blog .
http://propertyinvestment.blogebay.com/2009/10/08/how-to-make-successful-property-investment/