As we commence a New Year, most property investors tend to have property on their mind when considering their New Year resolutions, and are looking for the best property investment advice. They are looking to find out how to improve the performance of their existing property portfolio and how to grow their property portfolio by purchasing a new property. Most people as they commence a new year tend to feel refreshed and ready to start new ventures that perhaps they didn’t get around to the year before. Often this involves property. Once property buyers and investors make the decision to buy, the next question is generally where to buy. But how do you find the best new locations to buy property?
To get you started, these are 4 pieces of property investment advice for where to buy property in Melbourne in 2017 and how to find hot spots:
- The domino effect – research which suburbs have seen the most growth in property prices in the last 12-24 months, then look for suburbs surrounding those suburbs that may be a bit more affordable to purchase as they generally experience positive price growth as a result of buyers being priced out of the growth suburb/s. For example in Melbourne’s north the suburbs of Northcote and Thornbury have seen significant property price growth of around 40-45% over the last 5 years which has subsequently pushed up the price of property in Preston and Reservoir as a flow on effect as buyers were priced out of Northcote and Thornbury
- Infrastructure – research what infrastructure projects the government has committed to in and around Melbourne such as road projects, new freeways, train station upgrades and new train or bus routes. Although these might take several years to complete, the earlier you can buy property near the new infrastructure generally the more capital growth you can expect as new infrastructure can have a positive effect on house prices. A good past example is the Eastlink freeway that was completed in 2008, once this opened it improved the access to and from the eastern suburbs of Melbourne, in particular Ringwood, which saw property prices grow almost 35% in the 18-24 months after it opened.
- Shopping precincts – shopping strips and shopping centres in Melbourne tend to be a huge drawcard for buyers. So it always helps to buy property that is within close proximity to shopping hubs. For example the Gandel Group have poured millions of dollars into Chadstone and its expansion over the years which has seen a positive flow on to house prices in the surrounding suburbs
- Schools – VCE or ATAR scores come out every year in December. Generally you’ll find a positive correlation between the success a public school achieves and the increase of prices for property in the zone of that school. This is due to the fact that education is a huge determinant for families when deciding where to live. Given public schools don’t come with the same hefty costs of private schools they are a huge drawcard for buyers. Balwyn High School is a great example of how a successful public school can improve property prices. In the last 3 years Balwyn North, which is in the zone for Balwyn High School, has seen property prices grow by a staggering 85% due to an influx of foreign buyers wanting to send their children to the school.
At Luxton we have been buying property for over a decade, if you want to find more property investment advice, or to know more about finding the best property at the best prices or want an expert negotiator on your side request a call today to speak to one of our property buying professionals.