Help me to Retire

I was reminded of some of these simple tips last week at Aspire’s Investors update evening in Adelaide.

When looking for your next property, the easiest way to find the next growth area is to see what has grown strong recently. You can get this data from your local real estate institute. Once you have a list of the out performing suburbs, have a look at the surrounding suburbs in these areas. If those areas have had limited growth recently, theres a good chance that the strong growth from the neighboring suburb will flow onto the surrounding ones. This is known as the ripple effect.
Property prices usually rise first in the inner city and beach side areas that have the more expensive and exclusive residences. The ripple then flows out further into the suburbs and eventually into the country. Generally once you have seen large rises in rural real estate and then that comes off the boil, you know that the current property cycle has come to an end and another is about to begin.

Another tip is to get stats on average rental incomes and vacancies in the areas of your city. This data can help you to decide where to invest for yield (cash flow - low growth) or for capital growth (low yield). This can also help you to identify areas that will have a higher rental demand keeping your investment constantly occupied.

My last tip is to look for areas that have new infrastructure going in or about to go in. New public transport systems and road ways can open up areas to new growth and interest. You can get information on these things from government transport and infrastructure web sites.

Hope some of these things will help you out with your next property investment.