If you’re looking into expanding your rental property portfolio, it can be tricky to predict where the next best property hot spot could be.
As often happens, it is likely that some of the areas that are now experiencing a high growth rate were overlooked just ten years ago and not considered favourable or were non-existent.
History can teach us many things. While we can anticipate trends and place value in experience and knowledge, it pays to be prepared to expect the unexpected when it comes to property and knowing where to buy and when to buy and how it will pay off long term.
Someone famous once said, ‘nothing can be said to be certain, except death and taxes’ (usually attributed to Benjamin Franklin in 1789) and while there is truth to that, when it comes to property, there is value to be had in what are far more than ‘educated guesses’ but anticipated market trends based on fact and evidence.
Ultimately it the consumer who decides how trends will roll out. But, by keeping a close eye on areas pegged for future growth by way of gentrification, it may help get you on the front foot for your investment property purchase.
Gentrification of suburbs is by no means anything new and has been happening for as long as there have been villages, cities and suburbs.
From early shifts in blue/white collar areas, gentrification of areas is something that has been steadily moving and affecting marketplaces around the country; and is a tool which investors can use to their advantage when purchasing properties.
Property in suburbs with close proximity to transportation and accessibility to major centres, facilities and conveniences are likely to be good investments; but, for some suburbs which have already experienced gentrification, looking at surrounding areas which may still be yet to experience growth may prove to be more beneficial long-term.
Future development plans for shopping centres, restaurants, schools and transport upgrades can give a good indication of where future growth may be.
If you’re wanting to increase your rental revenue by expanding your property portfolio, your property manager can put you in touch with local sales agents to help you find your next investment.