Is your suburb about to take off? Look for these early indicators of a price boom.
There’s no better feeling than watching the value of your home skyrocket, and while some commentators recommend looking for falling vendor discounts or reduced rental vacancies, these figures aren’t always readily available to ordinary Australians.
The good news is there can be far simpler ways to work out if your suburb is about to experience a price boom. Take a look at our six signs to see if your home is poised to rise in value.
1. Neighbouring suburbs are in hot demand
The property market often experiences the ‘ripple effect’. As prices rise in one area, neighbouring suburbs offer better value so demand rises in these localities, thereby pushing up prices.
If the ‘Sold’ sticker is rapidly going up across homes in neighbouring towns, chances are your suburb could experience the outwards ripple of rising prices.
2. New infrastructure projects are in the pipeline
Infrastructure like schools, shopping centres and new road or rail links, which improve life for residents, can see property values escalate. Check your local council and keep an eye on community news for details of any planned developments.
3. Expanding local employment opportunities
Most of us like living close to where we work, and the creation of local employment opportunities can boost demand for homes in your area, helping to push up values. The development of commercial or industrial estates, or the construction of public facilities like hospitals can bring jobs to an area and that’s good for local values.
4. The renovators have come to town
The arrival of home owners keen to spruce up and renovate properties can spell good news for the entire suburb. This sort of gentrification often occurs in older suburbs with rundown character homes though it can also happen in locations where public housing becomes available to private owners.
Either way, when the homes around you are enjoying a makeover it’s a good sign your place is about to rise in value.
5. Yours is a Cinderella suburb
We all know those Cinderella suburbs – the ones that have the potential to be beautiful if it wasn’t for something like the aluminium smelter on the outskirts of town.
As land values rise in metropolitan areas, many old and unsightly industrial sites are being remediated as part of urban renewal projects. It’s the chance those Cinderella suburbs have been waiting for to reveal their true beauty – and local home values are sure to rise.
6. A large retail chain moves into town
Big brand retailers do their homework, and lots of it, before setting up shop in an area. It means the arrival of a leading retail chain be it furniture, hardware or appliances, typically means your area is likely to experience population growth. More people means higher demand for properties, and this can support long term property price growth.
Rising property values mean you are building home equity; a valuable resource that can be used to renovate your home, buy an investment property or fund that round the world trip.
If you want to find out what equity you hold in your property and what you can potentially do with it, speak to your local Aussie Mortgage Broker.
Has your town become an ‘it’ suburb? What indicators did you see?