When searching for a home in the right suburb, you can consider factors like crime rate, public transport, schools, facilities and more. But wouldn’t it be even better if you could find a home in a suburb that has future potential?
Finding a home in a suburb that is about to rise in property value will add much more to the future sale of your home. You want a property that is both hot on the market and in a prime location.
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Here are 6 things that indicate a suburb is about to jump in property value.
The average time that a property is on the market can indicate whether it’s in high demand. The shorter the period of time a property is on for sale, the higher the property value is.
If a property is on the market for a longer duration, it could indicate the suburb is not in high demand. It’s a good idea to seek homes in suburbs that have short and quick days on the property market.
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In a suburb that is about to rise in property value, you can often see an increase in the number of auctions. Real estate agents try to gather as many people as they can to these events. This allows them to bring the auction price up higher, as more parties are auctioning and bidding against each other.
When you have a smaller auction number, property prices won’t rise, and when you have a larger number, it’s a high indication of a rise in property value.
A vendor discount is the difference between the price a seller asks for and the final price with which the property is sold. When demand is on the rise in a suburb, sellers and real estate agents are less compelled to offer these discounts.
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Always be on the lookout for future infrastructure developments and plans. Speak to the local council on what plans are in effect. Perhaps a suburb is about to build a new train station, or a business complex which will add more jobs and opportunities for growth.
This can all be an indication of a future boost in population and subsequent growth in the suburb’s property value.
Even if your suburb of choice isn’t about to start any new developments or even if it doesn’t have any short market days, it could still be rising in property value. This may be the case if your neighbouring suburbs are in high demand.
This is because if there is no vacancy available in high demand suburbs, investors and buyers may then naturally seek out neighbouring suburbs. This can consequently increase the value of your neighbourhood in the property market.
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A falling or lower vacancy rate indicates that there are fewer tenants and spaces available for buyers/renters. This could be another sign of a rise in the property value of a particular suburb.
On average the vacancy rate should be at 3%. If it is lower, it indicates that there could be an increase in price, as few places are available. If the suburb is considered an ideal place to live, some buyers will even pay more to land their dream home or investment there.
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