Asking the right questions is an absolutely critical skill for property investors looking to get ahead with their investing, particularly if they're hoping to ensure the suburb or area they are looking at is going to stack up.
Positive Real Estate's Sam Saggers points to 10 easy questions that you should ask as a starting point.
1) What is the availability of new land? Will it be effected by urban sprawl or infill development?
2) What major infrastructure projects are happening in the area?
3) What major retailers are moving to the area?
4) What commercial office space is being expanded? Are the more jobs being implemented in small businesses?
5) What transport plans are in the area?
6) What is the major demographic of the area? Could it change over time positively
7) What schools are in the area? Does that match the needs of the market? Would families fight to live in the area to benefit from the schools?
8) What ability does the market landscape have to change? Or be gentrified?
9) What are the rentals yields like?
10) What are major companies doing in the area? Are airlines flying more regularly to an area? Are major companies building in an area?
He admitted that hotspotting is not an exact science, and while not every suburb will grow as expected, he said these 10 questions are crucial for investors to be asking.
To explain how he approaches these questions, Saggers pointed to Queensland's Townsville as one area widely regarded as diverse and offering a lot of demographic changes. While it has been on investors' radars for some time, he still said it has some good investment opportunities.
"[It's] Queensland’s strongest regional economy and de facto second state capital," Saggers said.
He pointed to major infrastructure of hospital redevelopments as being important for the area's future. For instance, the Townsville Hospital has recently completed the first stage of a $437 million redevelopment project.
"Townsville has become Queensland’s largest service center after Brisbane and currently has $54 billion of committed infrastructure projects across mining, construction and transport," he said.
He then looked at supply and demand, and found the picture to be favourable.
"Demand is improving, supply of mortgage in possession stock, that was a hangover from the GFC has dried up. There is large land estates that can aid the cities growth but the supply of new housing is limited to a few estates and the Honeycombs redevelopment of the urban city fringe," he said.
No.11 - Do you want to contribute to destroying the Australian economy? No.12 - Do you want to loose money? No.13 - Do you know any other form of investment or just enjoy being a lemming? No.14 - Do you want to contribute to the Ponzi and steal a home from a young family?
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
No.11 - Do you want to contribute to destroying the Australian economy? No.12 - Do you want to loose money? No.13 - Do you know any other form of investment or just enjoy being a lemming? No.14 - Do you want to contribute to the Ponzi and steal a home from a young family?
timo, you need to learn to wipe front to back mate.
I am the love child of Tony Abbott and Pauline Hanson
timo, you need to learn to wipe front to back mate.
You need to wipe from mouth to back
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
No.11 - Do you want to contribute to destroying the Australian economy? No.12 - Do you want to loose money? No.13 - Do you know any other form of investment or just enjoy being a lemming? No.14 - Do you want to contribute to the Ponzi and steal a home from a young family?
Here's one more timo..
Do you really want to spend your living days paying sweet dollars for the privilege of living in someone else's investment?
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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