But I know Sydney…
This is one of the statements we hear most often at Calla Property when we first talk to clients about property investment.
Clients often feel that they know the city and even suburb they live in or have invested in in the past. Usually this is because they’ve done quite well, either through good timing or holding the property for long enough. Often this is reason enough for the client to want to invest in the same area again.
This is why you shouldn’t follow that strategy. Firstly, it’s not a strategy. Secondly, even if you have done well in the past, it is unlikely that you really know the drivers for growth in the area. And thirdly, even if you have the first two right, it doesn’t mean it’s the best investment option for you.
To really understand where and what is the best property to invest in, you need to understand both the macro drivers and the micro drivers.
The macro analysis identifies the geographical regions that are most likely to experience strong capital growth. The four key drivers that influence property prices over time include: Infrastructure spend, Employment, Economics and Population growth and change and Supply and Demand.
Micro analysis identifies the suburbs within an identified area or region that are most likely to influence why someone would like to live there. They include, proximity to key employment and transport nodes and local amenity like retail, entertainment, education, health and recreation.
So the next time you find yourself saying: ‘but I know Sydney’…think again. An investment in property is not something to be taken lightly. When you get it right but doing all the research, you stand to do well and profit from your investment, but if you get it wrong, it can be an investment decision that is hard to recover from. Call the experts today at Calla Property to book your obligation free appointment on 02 9016 2852 and ensure that you don’t make a critical mistake when it comes to property investment.