Many people have a preferred suburb when it comes to purchasing a property but aren’t sure whether their decision stacks up.
And that’s where researching the property, and more specifically the suburb can help.
But, what factors are the most important?
As a buyer’s agent, I spend a lot of time doing research into which suburbs are a good investment choice.
So, I’m sharing my insights into a few key data points that can help you determine this if you’re looking to do the same thing yourself. They’re super important, and most of them are available online – often free.
Here are 3 key statistics to help you get a good gauge on a suburb:
- Vacancy rates
Now, vacancy rates will tell you how strong the rental market for a suburb is.
I use sqmresearch.com.au, which is a valuable site for looking up vacancy rates.
When you’re researching vacancy rates, keep in mind that the higher the rate is, the fewer people in that rental market.
From a rental perspective, anything over 3% is generally considered to be a very soft market, while anything under 1% is extremely tight.
- Days on market
The second thing we look at is days on market.
This is how long a property takes to sell.
Now, if a property takes 120 days to sell (which is often the case in rental areas), that’s considered to be a long time.
Compare that to somewhere with only 10 days on the market, which is a sign the location is on fire.
As you can see, this is a really important statistic for informing your decision, and you can also find tools for this online.
- Public housing
From a risk perspective, it’s always worth analysing public housing.
Ripehouse.com.au is a great site that provides public housing maps across suburbs.
If you can access Ripehouse, you can start drilling into particular suburbs and identifying the pockets within those suburbs that are generally considered less desirable because of public housing.
The site shows the density of public housing – whether that’s 5% or 40% – right there on a Google map.
So, if you’re trying to understand a suburb’s investment potential, remember to research these 3 critical pieces of data.
Do that, and you’ll be able to make a more informed decision when you purchase your next investment property.