[et_pb_section admin_label=”Section_2_Text Left:” fullwidth=”off” specialty=”off” transparent_background=”off” background_color=”#f7f7f7″ allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off”][et_pb_row admin_label=”Row” make_fullwidth=”off” use_custom_width=”on” width_unit=”on” use_custom_gutter=”off” padding_mobile=”on” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” parallax_2=”off” parallax_method_2=”off” column_padding_mobile=”off” custom_width_px=”768px” custom_padding_last_edited=”on|phone” background_color=”#ffffff” custom_padding=”60px|60px|60px|60px” custom_padding_phone=”40px|20px|40px|20px”][et_pb_column type=”4_4″][et_pb_post_title admin_label=”Property Market Research Tips ” title=”on” meta=”on” author=”on” date=”on” categories=”off” comments=”off” featured_image=”on” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”left” text_color=”dark” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” disabled_on=”off|off|off” disabled=”off” custom_margin=”||40px|” title_font_size=”36px” title_font_size_phone=”28px” title_font_size_last_edited=”on|phone” title_text_color=”#00afff” meta_text_color=”#95989a”] [\/et_pb_post_title][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n
One of the most important skills a property investor can develop is the ability to analyse a marketplace.<\/span><\/p>\n Not only do you need to understand where to buy, but you need to know what type of investment property will deliver the results you need.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Essentially there are six macro drivers of a marketplace. Each of these factors work together to influence a suburb\u2019s growth. <\/span><\/p>\n When governments and private enterprise are investing into an area it\u2019s a good sign that economic growth is happening<\/span><\/p>\n Pay attention to media reports of government and industry activity in the area. \u00a0Look for areas with large infrastructure projects which have been approved – and funded – not just talked about.<\/span><\/p>\n Is unemployment low? Higher wages combined with low unemployment means that your investment property\u2019s target demographic has more discretionary income.<\/span><\/p>\n Typically, property values follow income growth so look for areas of increasing business activity. Give high unemployment areas a miss – your investment property yields are unlikely to grow in such locations. <\/span><\/p>\n Demographics can tell you a lot about the individuals living in a particular location. <\/span><\/p>\n Information such as income, age and family status can tell property investors a lot about their prospective tenants.<\/span><\/p>\n For example, the spending habits and needs of a young family with children will vary greatly to that of professionals in the prime of their careers or individuals preparing for retirement.<\/span><\/p>\n Obviously then, each person\u2019s individual preferences and their needs will play a part in both the location and kinds of properties they\u2019re looking for.<\/span><\/p>\n Use this knowledge to find the right investment property for both your prospective tenant and your portfolio.<\/span><\/p>\n <\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image_384px” src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/02\/shutterstock_210681316.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”max-width: 384px;” title_text=”infrastructure”] [\/et_pb_image][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Capital growth is directly impacted by the state of supply and demand in a particular location.<\/span><\/p>\n When there are more buyers than homes, values rise; and of course the inverse is true…the more homes than buyers in a suburb will see home values drop.<\/span><\/p>\n Bottom line, look for highly desired areas with a limited release of land and a growing population. <\/span><\/p>\n This puts pressure on the existing supply and drives up your investment property yields.<\/span><\/p>\n You\u2019ll want to find locations where yields are strong; preferably at least 6%. <\/span><\/p>\n Look at the history of the suburb…if you\u2019re seeing consistent growth; for example 2.5% growth each quarter (totalling 1<\/span> 0% per annum) then you\u2019ve found a marketplace on the increase.<\/span><\/p>\n Typically this kind of growth can last anywhere from one to three years, so you can\u2019t muck about in analysis paralysis…you\u2019ll miss the boat!<\/span><\/p>\n As more individuals move into the area, pressure is placed on the available housing, leading to an increase in property prices if supply is limited.<\/span><\/p>\n While a growing population is a great driver of property prices, that doesn\u2019t always mean that if you bought an investment property in areas where the population is growing that you\u2019d see capital growth.<\/span><\/p>\n The other side of that coin is supply. If the suburb has a lot of land available for release, it significantly reduces any potential for capital growth.<\/span><\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image_384px” src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/02\/shutterstock_572474968.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”max-width: 384px;” alt=”demographics”] [\/et_pb_image][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Take advantage of the thousands of dollars large companies spend in market research. Look for movement from companies (e.g. Coles) into growth locations.<\/span><\/p>\n These companies are in the business to make money…they don\u2019t open up new stores or expand existing ones for nothing…they\u2019ve researched the area and believe it can support their expansion.<\/span><\/p>\n Another benefit of these companies\u2019 activities is that it impacts the supply and demand of housing in the marketplace; as people move into the area to fill job openings, they contribute to the local economy, leading to gentrification of not only that particular suburb, but of surrounding areas as well.<\/span><\/p>\n Look for locations with a diverse range of businesses. You don\u2019t want to buy in an area where everyone is employed at a single industry; that\u2019s simply a disaster waiting to happen.<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Text_H3: ” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” header_font=”Open Sans||||” saved_tabs=”all”]<\/p>\n [\/et_pb_text][et_pb_image admin_label=”Image_384px” src=”https:\/\/www.trc-gorod.ru\/wp-content\/uploads\/2017\/02\/shutterstock_458599567.jpg” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”left” sticky=”off” align=”left” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”max-width: 384px;” alt=”investment for family”] [\/et_pb_image][et_pb_text admin_label=”Text_B:” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]<\/p>\n Finally, study the marketplace demographics to get a good idea of the synergism that exists in that particular location. <\/span><\/p>\n Synergism involves the unique interaction between people and where they live that combines to create a certain \u201catmosphere\u201d. \u00a0<\/span><\/p>\nMarket drivers<\/b><\/h3>\n
Infrastructure<\/span><\/i><\/h4>\n
Economics<\/span><\/i><\/h4>\n
Demographics<\/span><\/i><\/h4>\n
Supply and demand<\/span><\/i><\/h4>\n
Suburb yield<\/span><\/i><\/h4>\n
Population growth<\/span><\/i><\/h4>\n
What to look for<\/b><\/h3>\n
Publicly listed property companies<\/span><\/i><\/h4>\n
Industry<\/span><\/i><\/h4>\n
Market synergy<\/b><\/h3>\n