Hi everyone
I currently have one IP and am looking at buying another. I would like to be proactive and am looking at buying a property I can add value to.
How do I identify a suburb with the greatest variance in prices?
Any help would be appreciated.
Thank you.
MLK
Research!
Houses cost a lot of money, they are a serious investment. I've seen people put more effort into buying a car than a house.
So my advice is to hit the streets in an area you like and see what's out there, and to also do some research on the costs involved in value adding – from simple cosmetic work, to renovations/additions, to subdivisions.
Good luck.Thanks for that. I have started putting together a table with the costs involved and time taken to compete such work, etc.
I am just wondering if anyone could point me in the right direction as to what sort of data I should be looking at when identifying a suburb with the greatest price variance.
MLK,
In my experience, investing your time in finding and understanding motivated sellers will get you the discount that you are after faster.
Case in point, in a Brisbane suburb at the moment the numbers for listings at the has doubled going from an average 60 listing for sales to over 130 with buyers far and few between with them being extremely non committal to signing a contract. If a life situation is forcing a seller to sell their property fast, a seller will drop their price dramatically to attract a buyer.
Agents in this particular area are doing it real tuff at the moment and will indicate the sellers that need to sell and who will take a significant price discount to do so.
Tip bit … On http://www.realestate.com.au you can research a suburb quickly. When you lookup a property on http://www.realestate.com.au it gives you the last 5 recent properties sold in the immediate area. Lookup 10 houses across a suburb and you will have 50 comparable sales to compare houses that you are interested in. Next when you talk to real estate agents about motivated sellers you will know that houses are worth to do a quick comparison and know when you come across a great deal.
I hope this is helpful to you.
Property Trader | Boston West Pty Ltd
http://bostonwest.com.au
Email Me | Phone MePrivate money lending opportunities available paying upto 12%, secured by bricks and mortar!
Hi Jason
Thanks for the information. It was very helpful. I hope to get out on the field soon and take action.
If you want to have really accurate information on that you are basing you research on, than you will have to start tracking what unrenvoated v's renovated properties have been selling for in those suburbs. But take it to the next level, break it down according to who many bedrooms, bathrooms, parking spaces and size of land. You will start seeing paterns repeating which will help you if you are considering changing the profile of potential renovation deals.
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