Gone are the days when investors believed ‘I can go out, buy a house somewhere, stick some tenants in it to pay the mortgage and make a killing!’.
As property markets across the country continue to display volatility and fluctuate in price, investors, more than ever, need to conduct extensive research before they invest. To ensure their property outpaces the market and safeguards against unpredicted price fluctuations, investors should search within a location that displays strong local economic growth. Investors should consider areas where wages are growing above average. This will give residents more disposable income to buy or upgrade their homes. Demographics are one of the biggest factors determining capital growth, so investors are best to search in redeveloping suburbs, avoiding blue-collar dominant areas, as these may suffer if unemployment creeps up. These locations are also where growth in wages tends to be capped by the CPI.
At Calla Property, we understand the significance of getting the location right when it comes to investing in property. We have developed a research methodology, Calla Property Insights, to help us identify the best investments in the country.
Our Macro Analysis identifies the geographical regions that are forecast to experience strong capital growth where we consider factors such as economics and employment, supply and demand, population and demographics, and infrastructure spending. Further to this, we conduct an in-depth Micro Analysis, where we identify the suburbs within a specific region, most likely to influence why someone would like to live there. Getting this part right, ensures you have income stability from your investment.
The Calla Property Team is passionate about education. The more insights you have as an investor, the more comfortable you will feel about investing in property.
To understand the importance of ‘location’ and getting it right, contact us to speak with one of our Calla PropertyInvestment Specialists, and find out how we can start Building Your Dreams.