Hi all,
I have been reading the latest issue of API. The databank at the back.
How much trust should I place in these figures?
For example, I am looking at figures for a suburb that is walking distance to the CBD, Universities, Shops, Cafes, Train, Buses, private schools, you name it. As far as location is concerned it is a no-brainer. Oh, the streets are to die for. Trees galour, beautiful gardens etc. The numbers in the databank are negative. The CG over 10 years is exactly shining.
Now, there is another suburb listed just above it in the index. This suburb is in the middle of nowhere, No mine to support it, no industry other than farming. A little town with the usual stuff. A pub, a school, a church etc. The numbers are all positive. Its 10 year CG is comparable to suburbs within the 5km CBD circle.
What's happening here?
PJ
Sometimes the to die for suburb becomes too expensive for people to buy into and they get forced to buy in the other neighbouring suburb. If you really want to know the price attend a few auctions in the suburb to make sure if this is the case.
Dockster,
I would have thought the purchase price is the purchase price. Why should this effect the performance?
I am led to believe residential properties within the 5 – 10km zone of any CBD should always perform better than the averages. On all fronts.
Why would a 'middle of nowhere' suburb with no obvious economic driver (mine etc.) out perform a dress circle suburb?
See, now this where I get 'analysis paralysis'. When, what I am being told does not reflect what I am seeing in the numbers. Sending me into a tail spin.
So, what are the figures I should be focusing on when deciding on a purchase?
PJ
Capital Growth – both historical and forecasted
Vacancy Rates
Rental Yield
Condition of property
Scarcity factor (is there something special about the dwelling eg nice architectural features, near the beach etc)
Proximity to transport, shopping centres, schools, employment
Forthcoming infrastructure (eg new road/rail line…)
Potential to add value to the property (ideas include create an extra bedroom, extend the dwelling, renovate, subdivide the land, build an additional dwelling, get a rezoning)
Be careful about buying into a suburb that relies on only one employer or industry – if the employer/industry moves out, the town might dieJacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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