The Next Big Thing

Wouldn’t it be great if, as investors, we knew which suburb was going to be ‘the next big thing’? If only there were signs …

There have been reports in the media lately of ‘ugly duckling’ suburbs that are about to undergo a huge transformation and predicted upswing in value.  As investors, this is where you may find potential for good capital growth and rental return; as you will be buying in before the area is ‘discovered’ and market demand starts to push prices up.  Here are 3 ways to identify an up and coming suburb that may be worth looking at for investment opportunities:

1 – The suburbs surrounding it have already had their run.  If the surrounding areas have already had an increase in value, people will start looking at neighbouring areas for value for money.  Sure, the area may look run down at the moment but that just means that it is primed for it’s makeover and new debut!

2 – There are plans in the works for infrastructure and commercial upgrades.  Check with your local council, main roads etc as to what plans are in the works for the area and the estimated timeline for completion.  Planned public transport hubs and new or upgraded shopping centres are all indicators that others have seen investment potential in the area.

3 – Location is also a huge driving factor.  Areas close to the city or beach are always in demand.  If the majority of the population is getting priced out of the ‘blue chip’ areas, they will start looking at somewhere that is just a couple of minutes down the road and still has access to the lifestyle they are looking for.

As always, due diligence is a must.  Collect your data and do your feasibility studies based on your own investment goals and capacity.  Just don’t dismiss an area that may have just been flying under the radar!