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When property prices decline or plateau in certain locations it usually means demand has dried up. This can then lead to increased vacancies and people needing to sell their investment due to affordability. A few people selling can turn into many people selling and figures begin to show increased levels of sale volumes. Reports then appear in the media, more people come and supply eventually begins to dry up due to the increased demand with property prices then rising due to competition and so the cycle goes around.

The longevity of property price growth in any given location and the sustainability of prices at any one time needs to be underpinned by a number of fundamentals. These include, but are not limited to, industry/jobs, population growth and balance in supply and demand not being tipped heavily in one direction of the other. Giving careful consideration to these when searching for an investment property will enhance the chances of that investment performing well over time and reducing the threat of market volatility.

When choosing an investment property the importance of research cannot be stressed enough and breaking this down into three key steps helps immensely. Completing step 1, locational (macro) research, should be your primary focus so you have a set area to search within. Following on from that, step 2 focus needs to be on situational (micro) research which entails identifying the key areas of a location. Then finally, having done the ground work in the first two steps, step 3 focus is to establish value and the price you want to pay for a property.

Thorough research in each step is essential, because ultimately the best results come from a clear focus to execute your investment plan successfully.

If you would like to find out how we can help you to achieve optimum property outcomes contact us on (07) 3368 1604 or [email protected]