Take the guess work out of wondering when a suburb is about to grow in value. We’ve listed the top signs to look for – a property investor’s must read!
As a property investor, it makes financial sense to purchase a property just before a suburb is about to grow in value. But how can you tell which suburb will be the next up and coming area? There are a few tell-tale signs you can look for, so let’s discuss them.
Signs a Suburb is About to Grow in Value
You’re ready to purchase a residential investment property. You’ve lined up your list of needs in a home. You have sorted your financing. It’s time to start looking! But which Auckland suburb should you buy in? We’ve put together a list of tips to help you spot when a suburb is about to grow in values:
- More properties are being auctioned – when the market is growing, there is more competition to purchase properties. Real estate agents take advantage of this by auctioning more properties and have bidders compete against each other.
- Average days on market are dropping – properties take less time to sell when a suburb is about to grow in value.
- Fewer vendor discounts – vendors are less willing to negotiate on the purchase price. They also are looking for fewer conditions on the sale and purchase agreement too.
- Less properties on market – the more a suburb is booming, the more people want to live there. This means people are less likely to sell and when a property does reach the market, it is not there for long.
- Increasing rent yields – when a suburb grows in popularity, more tenants want to live there. This results in landlords raising rents, making the area even more popular with property investors.
- Dropping vacancy rates – as more tenants want to move to a more desirable Auckland suburb, this places pressure on the rental market. Residential rental properties have lower vacancy rates, as when a rental becomes vacant, it is quickly filled.
- Large infrastructure projects – when new infrastructure is commenced or is planned, it is a sign a suburb is going to grow. Not only will homes need to be found for the workers, but as projects are being completed, more people will want to live close by.
- High online interest – a key sign that shows a potential suburb growth is the number of online property searches for those suburbs. This can be seen both on property listings and Google searches.
Finding the Right Auckland Suburb for Your Rental Property
It’s absolutely vital you perform your due diligence before purchasing any rental property. Talking with other investors and specialist Auckland property managers are two ways to help you understand what is happening right now in the market. Once you’ve purchased your rental, give us a call. We make rental property management easy, finding tenants, collecting rent and caring for your property for you.
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