When you are looking to buy property you want to buy it at the most advantageous time for you. In order to do this you have to keep an eye out and be able to determine if there is going to be an increase in the value of the property in the suburb that you are interested in buying.
You will be better able to understand this if you know what factors can create an increase in price. You need to know the capital growth. Ideally what you want to do if you are investing in property is by at the right time and just prior to when there is going to be an increase in value. There are some things that you can watch for to determine this.
You need to know if the demand for property is greater than what is available. When this happens investors will buy the property quickly and this means that the property has lower average days on the market.
You will begin to see that discounts are far less available. This is because there is a demand for the properties and vendors no longer need to offer incentives.
When there is a great demand for property auctions increase as real estate agents will elect to sell properties by auction. This allows for increased bidding.
If there is a low rate in vacancy properties this means that there is a shortage of accommodations for renting. As a standard it is common for a 3% vacancy rate to indicate a balanced market. When the vacancy rate becomes low rent increases.
You will begin to see a rising yield. This means that when an area becomes popular tenants will want to move to this area which in turn increases the rent cost. The market level will drop as anything that becomes available is quickly purchased.
Online interest will increase as more people look for property for sale in different areas.
Even if a suburb is not performing well and has not done so for a lengthy period of time, if the surrounding areas are doing well then it won’t be long before the slower suburb does as well.
It is important to look at all of the information available concerning the suburb that you are interested in buying in, for more information on your area, contact your local Ruralco Office today.