The following is a general 3-step approach to buying the right property although these steps may be a little different depending on the objectives of an investor and an owner-occupier:
1. Right cycle. The property market moves in cycles and different states have different cycles. One needs to identify the market is close to bottoming out in a particular state / region to get into the market.
2. Right suburb. Identify suburbs with a good track record for capital growth. Suburbs with good amenties such as public transport, schools, business parks and local attractions / lifestyle options but have yet to see any significant rise in prices compared to its neighbouring areas. Suburbs with good upside potential will prove to be good long term investments when gentrification happens. Always choose a strategic location within the suburb such as proximity to ferry wharf, train station, local shops or easy access to main arterial road. These areas within the suburb will always fair bettter than others which are further away from these conveniences.
3. Right property and price. The old adage “worst property in the best street” may only hold true depending on your investment objectives. You may require a bigger budget to renovate and attract tenants if you are an investor. Once you have found the right property in the right location, the last criteria would be to ensure you pay the right price. Research on the price of similar properties transacted in the past, check out the median price for apartments or house in the suburb (and know the limitations and flaws about median prices). Talking to neighbours or the person mowing the lawn in your chosen suburb is always a good way to find out more useful information.