In the real estate industry there are certain signs that we look out for when looking to invest in Brisbane property.
We look out for these signs as they tend to indicate that a suburb is primed and ready to take off. These signs are not guarantees, but they are good predictors. Use our list to help guide your decision as you consider whether to invest in Brisbane property.
So what signs indicate a suburb is about to take off?
Most people will say that when they invest in property they want either capital growth or a strong yield (sometimes both if they’re optimistic!). But how can we predict if a property is going to be a good investment? One way is to look for an investment property in the suburbs that are about to take off.
Below are seven signs to look for that can indicate property prices in a suburb may be about to increase. This can present an opportune moment to buy something in the area before it increases in value.
The signs to watch for are –
There are a high number of auctions. This method of selling property works best if there are lots of buyers. Auctions are transparent and foster competition among buyers.
Auction clearance rates are high. This indicates a high proportion of properties are selling at auction and that there is a good demand for property in the area. It can also indicate that supply is low.
Average number of days on the market. The average number of days on the market indicates how strong demand is.
Low vacancy rates. This shows that demand for rental properties is high. It also indicates that supply is low. This can result in higher rental rates and can even drive increases in capital growth as investors start competing for property in the area.
High rental returns. As with vacancy rates this is a good indicator that demand for rental properties is high.
Are prices steady? If price drops are nowhere to be seen it usually means that buyers are snapping up properties quickly. This means that there is no need for vendors to lower their asking price.
The number of available properties in the area is low. This indicates that demand is outstripping supply.
These are only guidelines but they provide a starting point for those looking to invest in Brisbane property. There are many sources of information that can help with your search for the perfect investment property. Some of our favourites are –