Learning from the Property Investment Experts
If you cannot find or cannot afford a property investment in your preferred location, looking at neighbouring areas is your best option. One reason for this is possible shared infrastructure but also the ripple effect. The ripple effect is when an area has an increase in prices due to increased demand, people start buying in the best location near it. When this area sees significant growth and the prices start going up it is called the ripple effect.
This effect can be seen the world over when previous industrial areas have been turned into hip food venues, with artisans populating it with studios and one-of-a-kind shops.
If you are looking into the property investment market you need to do your research not only on your preferred locations but also the areas surrounding it.
“Keep an eye out for the ‘ripple effect’” My father told me to look out for when one suburb has had great capital growth over a short period of time, yet a neighbouring suburb has not. He explained that this could mean that the neighbouring suburb will show a delayed capital growth shortly thereafter. When people can no longer afford to live in the more expensive suburb next door, they will buy in the cheaper neighbouring suburb, which will increase the property values in my (once) cheaper suburb – the ‘ripple effect’ in action. Prue Muirhead, YIP Investor of 2009
If your goal is to generate reliable income from investment properties, don’t try to do it alone. You’ll experience greater success with a professional to guide you through the entire process.
We at Vystal Property Group are part of a well-established network of financial professionals. With nearly 20 years’ experience in Australian property development, we have the tools and resources you need to make wise investment decisions.
We invite you to contact us with any questions or concerns you may have. We look forward to hearing from you!
Read the source article: yourinvestmentpropertymag.com.au