Identify the suburb for IP

Hello all,

Just a newbie, curious to know how do you identify a City, Suburb to buy an IP?

I was also reading location of the street also matters, is that true?

What tools do you use?

Can you please point me in the right direction?

 

Start with an area you know a little bit about.

I think the following are important features:

1. less expensive than surrounding suburbs (but still have the benefits of the location);
2. commutable to CBD;
3. Transport Links;
4. Rental prospects are good over the long term;
5. Close as possible to work and employment;

There are many posters here that have a more refined take on things, hope you get some more advice from others.

Best of luck

 

Everything in last post..but I also think it’s better to tilt towards OO vs renters in the target suburb. Too high a % renters means the location may be less attractive to OO, who ultimately drive capital growth through emotional buying decisions.

Having said that, a very low % renters can signify issues with proximity to higher paying employment, local amenity and so on. A renter has the flexibility to cherry pick locations which have a good range of attractive characteristics. You also need a level of rental demand to provide consistency of tenancy.

No magic tools I’m afraid. Realestate.com.au and other basic sites - in conjunction with this one - will provide decent research material.

 

Thank you!. do you know of a website that can anticipate Capital growth? I know nothing is accurate at least close enough to make a decision?

By the way like the name boganfromlogan!

 

Very good tip, where can I find this info please?? any reference would be helpful!

 

SQM Research - Property
Suburb Profiles for Property Investors | Your Investment Property

I have bookmarked the sites above as they are useful. Found them via other posters on htis forum (thanks to those).

BFL

 

If you're asking such a question, it means you're overthinking it. I don't believe anyone doesn't know that there are good and bad streets in any given suburb and how to pick them. You know this stuff. There is not some secret investor knowledge here to be had. You're being too analytical when you don't need to be! Just use your own gut instincts as a regular Jane Doe - these instincts are more tuned than you give yourself credit for. If you're getting yourself paralyzed with analysis...let me simplify things: if you want to live there, others would too. That's not a bad place to start with identifying good property!

 

Start with a budget (a fairly tight range, not below 500), type of property (house or unit, not either) and city (pick a direction).

new investors tend to suffer from too many options, and too much on finding the perfect property that will give yield, capital gains and rainbows. Focus on one property type in 2 or 3 adjacent suburbs.

 

Thank you Jaybean! it makes sense, there are way too much-contradicting info out there. Few says Brisbane good but rest says Brisbane bad.. info overload.

 

Sure, thanks. Just a leading question, how do you identify A SUBURB?

 

If you say a free standing old house at 600-700k, sydney for example, that narrows it down a lot?

 

Where are you living currently?

What suburbs surround you (assuming you live in a city)?

How would you personally differentiate between them?

I think for your first investment, it’s no bad idea to stay close to home (assuming there’s a range of investment options nearby and you don’t live in WoopWoop).

 

Or the short cut is go straight to Rochedale South!!