8 signs a suburb is about to increase in value
You’re trying to invest in property. Maybe for yourself, maybe for a business, and you just don’t know where to buy. Should you buy down the street? In the next neighbourhood over? To help you make this decision, we have 8 reliable signs that a suburb is about to increase in value, signalling you should invest now or, at the very least, soon.
- Average days on market are dropping.
If houses or land are listed and sitting for a long time, that’s a hint that there’s a lot of supply and not very much demand. This doesn’t mean you shouldn’t invest, but it means you should be cautious. If you plan on listing, you might put something on the market that sits. However, if the average number of days that property remains on market drops, demand is outpacing supply and you might want to invest.
- The available number of properties is falling.
This goes in tandem with point 1. If the number of properties people can purchase is low, properties will spend less time on the market, and suburb value will rise.
- More properties are being auctioned.
Realtors often list property with a designated price. If auctions are happening more frequently it means that demand is up, and the value of property can be increased as well.
- There are less discounts on market.
When properties are being sold at a discount, it indicates that demand is low. As demand rises, less and less properties will be offered at a discount, because the discount is no longer necessary to guarantee a sale.
- Online Interest is at a rise.
The internet can give you a good idea of where property is popular. If online searches show people continually looking for property in a suburb where there is not much property for sale, supply and demand is at work. This suburb is on the rise.
- Reduction in vacancy rates.
Very simply, this means that the rate of vacant property’s in any given place has fallen. There is a shortage of available property’s in comparison to the number of people searching for property, and this indicates high demand, so higher value.
- Rising Yield.
As yield rises (properties become more valuable) around a suburb, an investor can bet that soon, the suburb will become more valuable, as will any property contained within it, even if it is currently experiencing prolonged underperformance.
- Prolonged underperformance.
The phrase, “What goes up, must come down,” works in reverse when discussing markets. The property market must bounce back at some point. If a suburb has been underperforming for a while, and especially if the markets around it are on the rise, the chance is that recovery is coming soon.
Always use your best judgement when investing in property. These eight tips will help you identify the best times to buy and sell. If all of these 8 tips describe an area around you, now is a time to invest in the property. Always remember, the longer you remain in a market, the greater your profits may be.