Monthly Archives: December 2015

Identifying The Next HOT Property Growth Suburb.

If investing in property, one of the key factors in giving yourself the best chance of an early rise in the value of your new asset is to endeavor to identify, and buy in areas likely to experience greater than average growth in your chosen area.

Obviously, to be ahead of the masses, and the mainstream news of a growth suburb, (by which the time the masses have removed the majority of initial potential growth), is very attractive but does require some homework, some leg-work (yes physically going to have a look IS part of your strategy), a healthy attitude to take on some calculated risk, and of course some key rules to follow to give you the edge.

Broadly speaking, market prices of houses, and subsequent growth in value is, as in any buy/sell situation, subject to the forces of supply in demand. So in essence, what you are trying to identify is factors that may change this balance in your favour.

We are not including the changes in infrastructure e.g. new train lines, extension of freeways etc, in our golden three, as these often change and once confirmed, the growth has often occurred in anticipation unless you are very fast out of the trap. However, on top of our three below, this is undoubtedly worth some consideration.

Your three key “rules of the game” are in no specific order as the degree of each is more likely to be the determining factor in growth rather than one single factor, and in many cases looking at all three may be prudent to trim down your short list into your hot list.

 

Rule 1 – Take advantage of the “Ripple effect”

The basic principle is that though identifying top growth areas currently, historically the next ones to move are the adjoining suburbs which play catch up.

Potential Actions:

  • Get hold of a suburb map and the latest information on median growth rates over the last 6 months and quarter and some way of coding (e.g. a coloured marker or creating a 1,2 3 grading system). Get busy with your marker!
  • Look at the adjoining suburbs and if there is more than a 5% difference then you could have identified a winner
  • Know which stage of the cycle you are in if it near the beginning of the cycle then the CBD and coastal properties are likely to be your main out-performers. Look 8-15km from either of these key areas for potential growth over the next 12 months

 

Rule 2 – Look for NEW “trending” suburbs

As traditionally, trendy suburbs become less affordable, then other areas with a historically less desirable reputation may quite quickly become the place to be

Potential actions:

  • Identify those areas which have had slow but obvious growth, that have new houses built, sub-divisions or major renovations to lift street appeal over the last 6 months.
  • Check out the demographics of those moving into the area and new facilities or business investment. Note if there is lowering of average age group moving into the area with evidence of increase in retail outlets, schools and cafes

 

Rule 3 – Evidence that this IS the place to be.

We made reference in the introduction to supply and demand dictating market price movement, so having some evidence that this is happening could be a vital clue in narrowing down that golden suburb further.

Potential actions:

  • Increasing rental yield above the area norm is a strong indicator a suburb is gaining popularity. This indicates not only that the suburb may be gaining popularity but traditionally may ultimately result in higher demand to buy as those who are renting turn into home-buyers. Additionally, high rent yielding suburbs are going to be attractive to property investors who want to reduce gearing that is perhaps the case with investing in other suburbs.
  • Evidence of rapidly increasing sub-division activity or zonal changes may increase the attractiveness again to investors and be an indication of demand to live in the area. Looking at changes in population may again be advantageous.

 

So, get busy! Remember homework and leg-work are what make the difference to your success, and armed with your three golden rules AND of course some indication of affordability (which is of course something that we would be happy to have  a no obligation call) and YES! your next property decision could be the one to rapidly increase your net worth.

Getting ready to sell – #1 Painting your house exterior.

One of the key objectives when selling is to have enough street appeal to move people to want to come inside.

Irrespective of whether you are happy to tolerate the way things look on the outside there will always be the assumption made that an untidy, unkempt, in need of repair exterior reflects what is in the inside too.

It may be the difference between then choosing the house down the road rather than yours!

Let’s assume you have already done any external repairs needed (or had someone do them for you) and the front garden etc has had the tidy up required already and you are now moving onto the painting.

The extent to which you get busy with the paintbrush will depend on the exterior of the house, i.e. whether it is brick, rendered or weatherboard (the latter two potentially requiring some attention) and of course all of the other external fixtures.

Decision to paint made let’s go through the steps…

  1. Decide on paint colour scheme for your exterior. This should include ALL of the exterior not just the walls. Considering complementary colours for all doors, window frames fascias, eaves and gutters is vital if your exterior is to look appealing. Don’t be afraid to ask for , even paid help, the small investment in someone who has the right eye for these things may be a worthy investment. Remember it is not about you. A luminescent purple may be your favourite colour but your aim is to appeal to the market.
  2. Once you have chosen colours then choose the paint. As well as the area you need to paint, the spreading rate is important information your need to calculate how much paint you will need. Use a paint calculator (there are many on-line) to determine how much you are likely to need to buy.
  3. Temporarily remove any portable items in close proximity to the exterior surfaces to be painted e,g. pot plants, garden hoses etc, Anything that is not portable Ensure plants and the ground near the walls are covered with drop cloths (which are secured), so as to not cause damage or create unsightly splatters of paint adorning the pathway or interestingly spotted flowers.
  1. Prepare exterior walls for painting:
    • Wash walls with using a sponge and a small amount of detergent in a bucket of water to get rid of any dirt or grime. Hose down afterwards to remove any residual detergent,
    • If there is mould on any surfaces this may be treated with bleach solution. Apply with a sponge and leave to soak for 15 minutes before hosing off. In areas which are more significantly affected you may need to repeat.
    • Inspect the walls for any peeling or flaking areas. Get busy with a scraper to remove the loose paint then sand the surface down.
    • Fill any dents or nail holes in the walls with a pre-mixed exterior grade filler. Sand the areas once the filler has dried.
    • Check around any doors and windows (or any other moving parts) for cracks or gaps. Fill these with a paintable acrylic sealant. Again sand down these areas once dried to create a smooth finish.
    • Once the fillers and sealers have set, sand down these areas. While you’re there, sand down any rough or shiny spots to improve adhesion and finish.
    • Spot prime the filled and sealed areas with sealer primer undercoat.

 

  1. Apply painter’s masking tape to fittings which can’t be removed and around edges which may be fiddly and difficult to paint around, such as trims, windows and gutters.
  2. If a ladder is required, make sure it is in good order, on level ground and has someone at the bottom to steady it.
  3. Start painting from the top down, beginning with the gutters, then the fascia and eaves (brushes are often advised).
  4. Then you can move onto the walls. Do these in distinct sections. There are two reasons for this. Firstly, this is not an easy task and to be able to tick areas off gives you the feel good factor to keep moving. Secondly, should this be a project over a number of days clearly defined start and end points are always good to have.
  5. Walls completed and we are on the home straight….time to paint the trims and windows. Always a good idea to keep these open while painting so you don’t get sticking after painting.
  6. Clean up time..remove the covers, stand back and admire your external house facelift!