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How to research suburbs to Invest in?

Discussion in 'General Property Chat' started by danazz, 10th Aug, 2016.

  1. danazz

    danazz Member

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    Hi, I'm a first time poster. Just joined the forum a couple of days ago.

    I'm looking to get in to the PI game, but am really struggling to do proper research. There is so much out there its a bit overwhelming. I've been using Investment Property & Suburb Performance Data, Suburb Profiles for Property Investors | Your Investment Property & Sold House Prices & Auction Results | My RPData is now propertyvalue.com.au to check out suburb Capital gains % and yield %, as well as what has sold in areas recently and what's on offer. But how do you know what is a good suburb that one can afford to invest in (currently looking at a budget of around $400 - $500k, preferably nothing less than 2 bedroom).

    I've been jumping from suburb to suburb. Yarraville, Geelong, Forest Hill (live around the area, so am pretty comfortable with the area), Bendigo, Toowoomba, Logan. I feel like I'm just taking stabs in the dark, and not something I want to be doing with that amount of cash.

    Does anybody here have a PI Mentor? I'd like to get one, but not sure who to ask? I've been to a Positive Real Estate seminar, and they seem to offer a mentor scheme, but I've been hearing that they charge around $10k to join. Then there's the question of whether one can trust them or not, or whether they are just trying to push their own properties.

    If anybody has any advice, I'd love to hear from you, or experienced the same feeling when starting out as I currently am, please do share.

    Thanks
     
  2. big max

    big max Well-Known Member

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    There's a useful tool in the article below. Not sure how to directly embed or link only the tool itself (anyone know):

    No Cookies | Gold Coast Bulletin

    I also use data from onthehouse.com.au and re.com.au.
     
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  3. danazz

    danazz Member

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    Thanks for the info @big max . Is there anything in particular you look for when researching?

    Is re.com.au subscription based?
     
  4. ellejay

    ellejay Well-Known Member

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    Welcome to the forum! You'll have gathered that no one has a crystal ball. You seem to know your budget so the next step is working out what and where you are comfortable investing in. Do you prefer somewhere close to you, so that you can physically check on things if needed or even self manage at some point/do maintenance or repairs if needed to reduce costs? Do you think you might potentially want to move in at some point in the future? If these things aren't an issue you can widen your search to look further afield. As long as you follow the basic fundamentals around population, infrastructure, projected growth etc then you should see multiple examples of suitable areas to invest. Just comes down to preference. Cash flow is important to consider as well, how much can you afford out of your own pocket to hold the property? What yield do you need. Some places will be around 4% yield more or less, some people just buy places at higher yields that cover holding costs. Again, depends on your income and capacity to put money in or not.

    There are some BAs on the forum who have had very good results. If you don't mind paying for this service it shortcuts the process of getting to know the markets within markets in various regions. Some may be willing to do some mentoring, you'd need to ask.
     
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  5. eskander

    eskander Well-Known Member

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    Building on what @Jess Peletier said, it may be a good idea to start with what you aim to achieve from property investing. Are you looking for steady cash flow from day 1, long term growth or ideally, a combination of both? Are you looking to develop later on down the track, do a reno and pull out equity? Do you have the income to support a property costing you money out of pocket or will you need it to support itself?
    @Leo2413 and I'm sure others have written some excellent posts about doing DD and working out what your goals are so maybe do a search of his posts to start with, good luck! :)
     
  6. MsAli

    MsAli Well-Known Member Premium Member

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    @danazz - look at the investment that's happening in the area such as new shopping malls, big retailers, new transport hubs, education facilities, roads infrastructure, hospitals etc
     
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  7. danazz

    danazz Member

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    @ellejay Thank you very much for your info. I'm not too fussed about it being that close, although starting out, don't know whether I'd go interstate first up.

    You mention knowing the fundamentals like population, infrastructure, projected growth. Where do you get this information from?

    I'll keep an eye out on some BAs on here. Definitely will be good to get some professionals around me getting started.
     
  8. MTR

    MTR Well-Known Member Premium Member

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    networking
     
  9. danazz

    danazz Member

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    I'm looking to gain financial freedom within 10-15 years. That is the goal anyway. I just need help in getting that plan setup. I'm going to see Positive Real Estate tomorrow for a free consultation, and see whether they could get me started with getting the plan setup. If not, who would I need to speak to in order to get help setting this up?

    I currently have a mortgage broker, but not sure they're the type to set up a PI strategy/plan.

    I'll look around and check out @Leo2413 posts. Thanks for the tip.
     
  10. ellejay

    ellejay Well-Known Member

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    Well population 100k plus minimum as a guide, avoiding small, single employer towns. You can generally start with a google search of areas you're looking at, or search them on here and ask questions/start threads. This should lead you to info about any new major developments/projects in the area. To be honest though, you live in Melbourne. I live outside Melbourne but blown away every time I go there by the massive growth. Personally I'd stick with Melbourne and surrounds, but that's just my opinion.
     
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  11. ellejay

    ellejay Well-Known Member

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    Please be very careful before signing with any firms like Positive Real Estate. I don't know them, but have a search on here for reviews. Some of these firms get kickbacks from developers for selling you overpriced properties with poor chance of gain. You'd be much better off learning for free on here and taking time to inform yourself so that you at least have some idea whether or not someone is selling you a good deal or a total lemon.
     
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  12. ellejay

    ellejay Well-Known Member

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    Do a google search for Positive Real Estate Somersoft review and you'll see some comments on PRE. Somersoft was the predecessor to this site.
     
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  13. ellejay

    ellejay Well-Known Member

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    Also, before giving away your hard earned cash you could try to get to one of the regular meet ups in Melbourne (advertised in the meet up section). Networking will be your biggest friend in investing.
     
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  14. JacM

    JacM VIC Buyer's Agent Business Member

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    Good suggestion by @ellejay re going to meetups. They are advertised in the meetups forum here;

    Networking & Meetups

    The other thing to add is to determine budget first as that helps to rule out many areas that are too expensive for the budget, thereby leaving for consideration viable suburbs.
     
  15. euro73

    euro73 Well-Known Member Business Member

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    Nooooooooooooooooooooooooooooooooo!
     
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  16. JacM

    JacM VIC Buyer's Agent Business Member

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    The difficulty with mentoring programs is identifying when success has been achieved. All too often we see people finish their mentoring program still not confident enough to do anything.

    For $10k you could instead have done any number of things. Perhaps putting down a deposit on a modest regional property. Or hired a good BA to find you a property and teach you along the way. Or spent money on a renovation on a place you already have to increase its value.
     
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  17. euro73

    euro73 Well-Known Member Business Member

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    Cant believe people are still dealing with that mob. Them, and Mr X at Prent Tark
     
  18. Mac Fields

    Mac Fields Well-Known Member

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    Before jumping into what suburb to invest in, I would suggest reading lots, and lots... about strategies, lending/finances, market analysis. Start here but also books - McKnight, Lomas. More in this post - Where to start - which professional? Somersoft also contains great threads and comments that provide timeless advice.

    Mentors are great, but by reading lots, you'll be able to target your questions to get more from them and work out if they are for you (or if they're leading you down a long and wrong path).
     
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  19. Darren

    Darren Well-Known Member

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    @Mac Fields is right, reading McKnight or Lomas will steer you in the right direction, personally I have found Margaret Lomas Investing in the right property now sheds a lot of light and direction with what research you should be doing to find a suitable location to invest in.
     
  20. oki doki

    oki doki Well-Known Member

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    Actually, if u have the time u can do what a BA can do... Personal opinion no offence.
    Networking forum blogs like the twin sisters past ss interviews..
    Think about it... How long does it take to save 10k?? The usual BA rate.
    I have had past experience where BA tells me stick within 10 km of east of melb cbd.... Don't have to be a rocket scientist to suggest that..
    But if u r interstate or time poor than BA is a good option...
     
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