Hello guys My online reading suggests that researching a prospective investment area should look at things like 1. Population growth trend in the suburb/city 2. Sources of employment in the city/town Where do people generally get this information from? If we go regional or smaller towns it seems we should invest in areas that are not reliant on just one or two sources of employment. So how does one find out this information about employment providers in a particular town? Thanks much
Regional and smaller towns AND employment and growth dont go along together. If you are buying in towns, you are throwing away capital growth unless you have something in mind or there it's some infra upgrade or train line upgrade or similar sort is planned in near future. For trending g and hot house and land areas, this information for suburb will Berber bee available until it is too late. However, you can take a call based on that states' data/ stats. You need to be updated with all infra planed and being built. News websites like Domain and realestate. Statistic websites like rpdata (may require paid subscription). Census and other reports that predict population and jobs. Regards
Hello Ashish Thanks much for the comprehensive response. I realise that capital growth would be a distant possibility but I am unable to find positive cash flow properties in major cities. Any advise on that? Thanks
@Prop1978 What is your goal with this investment? Whilst cash flow is good when it comes to minimising cash outflow, and not impacting your lifestyle - you need to find something which will give you the best of both - capital growth and cash flow. You will need to work out what you are comfortable with. Look for: 1) where the location is on the property cycle; 2) when was the last peak?; 3) what are the rental yields like? Are these dropping or improving or stable? 4) what infrastructure is happening in the area/region which will attract people to live there? Where to get this information: 1) Look at historical data including year on year growth; 2) council websites, announcements; 3) calculate rental yield for deals you are considering - look at realestate.com.au for comparable properties to calculate this 4) local news What is attracting you to regional areas (apart from cash flow)? is it tied into what you can borrow?
In some of my research so far have looked at data such as vacancy rates from www.sqmresearch.com.au and dsrdata.com.au for supply and demand scores. So far seems to line up with growth trends on realestate.com.au. Anyone else use these sites?
You wont find any in Sydney. Melbourne has grown at a good pace and I would be hesitant to buy. You can try reading threads on Armstrong Creek and Geelong by Dave3214 and sash though. .ay be you are lucky to find something there. Read threads on Brisbane and Queensland. Reading a lot is key, consult people that have bought in the area you want to buy and finally be decisive and be ready to hit the nail at the right time. Regards
Hello Thanks yet again for this comprehensive response. It would be great to find something that would have both capital growth and positive cash flow. But where are these deals? I can't seem to find them. I am thinking smaller towns primarily for the cash flow. For my first investment property I can look to buy something worth 500k but I am thinking of not exhausting the entire amount in one property itself. Otherwise I might have to wait too long to buy the second one. Ability to read the property cycle and finding when the last peak was is difficult for me. Not sure how to do this. Some direction in this regard would be highly appreciated Thanks again
Thanks much Ashish. I am spending time reading stuff. Hopefully I pick the right one up. Will have a look at those threads. Where r u looking to buy?
In the capital cities build an investment savvy team. Use a local BA if you aren't sure, to tap into their knowledge. I must add.... these deals are likely to be neutral to slightly negative. But capital growth is what will create wealth... and not $1,000 cash flow positive each year.
