The Pros and Cons of Investing in Local Areas
Did you know that most property investors buy their first investment property in their local area?
It’s the safe option – because they “know the area” and can “touch” their property.
Is this you?
Buying in your back yard is statistically one of the worst decision you could make.
According to the stats – it’s actually a HIGH RISK move.
Why is this?
1) YOUR suburb and its immediate surrounds are highly unlikely to be one of the best growth areas in all of Australia.
It’s just statistically really unlikely and a massive gamble.
2) Even though you “know” your local area, chances are you don’t know it at all when it comes to data.
You might know the library, the folks, the cafe, the schools, the parks, the roads, the character..
But these things don’t matter at all.
There are more than 30 data points and trends you need to review before being able to PREDICT capital growth.
This data – which almost no one else uses (believe me), can be learned.
And couple it with strategy, valuation, negotiation – you have yourself a winning formula.
Using data, you can easily find high growth suburbs, with renovation/ development potential, which has positive cashflow properties.
It’s not hard. You just need to know the data.
So, please don’t buy in your “backyard”.
And please don’t invest before learning property economics and advanced data.
It’s fun and easy!