How to efficiently target high-growth suburbs

How to efficiently target high-growth suburbs

As we outlined in our previous piece, LGAs give us an incredibly efficient filter for finding areas which are potentially on the cusp of explosive growth. 

The search doesn’t stop there, however. While finding the right LGA will definitely put you in the right general locality, you’ll still need to dig deeper to find the best candidates for your investment dollar.

The reasons behind this are largely common sense – a rising tide doesn’t necessarily lift all boats after all. Even if an LGA is going full steam ahead on the market, there will always be individual suburbs or streets which are stubbornly refusing to shift for various reasons. 

Similarly, there will also always be pockets of the LGA which significantly outperform all local averages. As an investor, you need to make sure you’re making the right decisions within an LGA in order to fully capitalise on its overall momentum.

{{top_five_optin}}

Narrow Your Window – Now Means Now

As we mentioned back in our piece on the importance of real-time data, having access to the latest news on buyer behaviour opens up a huge range of advantages to you as an investor.

In the context of picking the right suburb within an LGA, it means you’re able to focus on areas that are primed for immediate growth. That’s growth that’s about to happen right now, not six months in the past or the future.

In order to pull off this trick, you’ll be looking to get out ahead of two classes of investors. You’re aiming to get into the market a long way ahead of less sophisticated and reactive investors, and also beat more experienced investors to the punch on suburbs where the stars are truly aligning. 

With the type of data that’s available to you on Ripehouse, you’ll be confident about ticking both boxes and looking for properties that deliver returns right from day one.

Suburban Drivers of Hockey Stick Growth

So, where to find these spectacular suburbs? Our LGA methodology gets you a long way down the road by pinpointing larger areas where the foundations for explosive local growth are in place. 

We then follow a similar approach to drill down into the detail and surface local pockets of opportunity.

As with our LGA analysis, the process is overwhelmingly data-driven and spares you from the potential investment horrors of going with your heart. We’re actively tracking local metrics in real time, searching for trends such as simultaneous positive rent and yield changes and upticks in sales volume. 

We’re then checking the supply side by making sure that numbers for “days on market” are solid or already tightening. When those moving parts click into place, we know that we’re looking at a suburb with potentially imminent and outstanding growth, and that it’s time to act!

By honing in on the right suburb early, you position yourself intelligently in terms of immediate upside, and massively increase your chances of overall investment success as the market races to catch up with what you already know. 

The final piece in the investment jigsaw sees us get even more granular by stepping down to the street level. 

We’ll be covering that in the final installment of our series, so be sure to read through to the very end!

 

Subscribe to our newsletter

Weekly updates Weekly headlines, delivered to your inbox

Join the conversation!