Finding the right property can earn you handsome dividends but research is required.
Finding the next real estate hot spot shouldn’t be based on a hunch. There are four demographic factors that determine if an area is in the early stages of gentrification.
1. A decrease of people 18 years old and under that is lower than the state average;
2. An increase of couples with children that is larger than the state average;
3. An increase of those who lived at a different address five years ago that is larger than the state average; and
4. An increase of females working in professional occupations.
When there are more couples moving in to areas that support them in ongoing learning – ie near Universities, transport etc and create a need for local business in the way of cafe’s which supports local business, then communities thrive. It is these areas, next to the ritzy suburbs that move on up in demand, creating a buzz and eventually pushing prices up.
With high paying professional jobs these couples are changing the landscape of areas created 50 years ago. Developing land, updating tired homes and creating an area that is both pleasing to the eye as well as convenient to all demands professional life.
As the older demographic move on to retirement or aged care, their homes are being snapped up by young savvy professionals with a high borrowing capacity and larger disposable incomes. Breathing a new lease of life in to these homes makes way for change – and gentrification begins.
And last but not least – more independent women buying homes to invest in or reside in means that there is a higher demand than ever on these locations.
The secret is to get in early before everyone else works out what is going on. Buying next to a suburb that is hot right now is a good indicator of strong property growth in the near future. Keep an eye on suburbs where change is just starting to happen and you’ll be rewarded for doing your research! Adelaide’s auction clearance rates are at an all time high – confidence is again returning to the market.
