The key to building a strong property portfolio with a lot of value involves education and identifying areas for potential growth. Investors seek to yield the benefits of buying property in an upcoming suburb before it surges in value. Here are some signals that indicate that a buyer is about to make a good decision about a suburb.

Infrastructure Growth

Something to consider is the future development plans in a suburb, like the SA Government's Glenside project involving the release of 16.5 hectares of surplus government land for private development in the City of Burnside, the level of access to public transport and local community programmes. It is a sign that there may be a boost in population growth. Investors who want to stay one step ahead of the rest should make an effort to inquire about the plans for development in the area, check out local council websites and local community news. If there are proposed improvements to infrastructure and amenities in the near future, it is a good indication of future capital growth, which will help determine whether the suburb is a good long-term investment.

Local Employment Opportunities On The Rise

The development of commercial or industrial estates or the construction of public facilities in an area can bring jobs to an area. It is ideal to live close to work and the creation of local employment opportunities will boost a demand for homes in that area, helping to push up the value of a suburb.

Gentrification

Gentrification is a change to the socio-economic profile of a particular suburb which use to have a poor reputation and is now seeing wealthy residents moving in. Investors should identify areas undergoing gentrification where incomes are growing and people can afford to pay higher prices. An influx of young professionals is a strong indication of gentrification. Affluent residents invest more time and money into improving their neighbourhoods, pushing up prices and rent.

Neighbouring Suburbs Are In Demand

If there is a strong level of interest for a suburb, it usually means prices are already high and it may not be a good investment since there is limited room for growth. Investors seeking a good return on an investment should consider neighbouring suburbs where there are not many properties for sale as demand will likely move into these suburbs from the ripple effect and cause prices to surge.

At Rosie & Rosie we combine our knowledge of property trends, analysis of the latest property data and extensive network of industry related professionals, to help you identify the signals that will help you build a strong property portfolio.