You’ve found the right marketplace.
All of the market signals indicate that this suburb is on the cusp of growth.
So you decide you’re going to finally take the plunge and buy a property for investment.
While it’s great that you’ve finally decided to buy an investment property, you’re not finished yet…choosing the right kind of property is just as important as finding the right location.
So how do you know what type of property to buy?
By understanding the demographics found within your particular suburb.
When buying a property for investment you’ll need to know and understand what your target market wants and needs in a property.
Not only should you consider what appeals to prospective tenants, but should you ever want or need to sell your property, the more appeal it holds for prospective buyers, the faster you can shed your investment property.
So then, how can you ensure that you’ve purchased a property for investment that will hold its investment value over the long term?
By understanding how demographics impacts housing demand.
Depending upon your age, you may or may not realise just how much demographics have changed over the last forty or so years.
No longer do people get married while in their twenties…now, it’s not unusual at all for first marriages – if a marriage takes place at all – to happen in someone’s late thirties or even later.
People would have a lot of children years before; now the household size is shrinking; from around 4.5 people per household to half that at 2.5 on average.
In fact, as of 2011, in Sydney forty percent of households had only one person in them!
So what do all of these facts and figures tell us?
They hint at the kind of investment property that appeals to the majority of individuals in a particular suburb…information we need if we’re going to choose the right investment property for our portfolio.
Know your target market
Trends come and go, so it’s important to understand what drives your target demographic to make the decisions they do.
Choices surrounding lifestyle and “liveability” play a larger part in the choice of where to live than perhaps was true of previous generations.
For example, it’s no longer the default choice for individuals to live in apartments because they can’t afford a house.
As city planners focus more on creating communities where people can both work and play; we’re going to see an increasing trend towards more urban lifestyles.
Study the market data.
What types of properties are selling/renting the fastest? Which ones are commanding the highest sales? Once you know the kinds of properties which are the most in demand, you can narrow down your search further to find the right property for investment that fits with your strategy and your particular financial situation.
If you want to meet with like-minded people sharing the same interest for property investment, you should register to attend our next Property Investor Night.
At these FREE events held all across the country we discuss where the growth markets are right now, and share ways you can navigate your way to financial freedom through investing in property.
Seats fill up fast, so book yours now!
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