“These areas will always be in demand” they said…

Home Forums Property Market Research Q&A “These areas will always be in demand” they said…

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    • #23714
      AvatarPK Gupta

      Don’t fall for that one. You need to understand exactly what demand IS and ISN’T. Only then can you pick a good suburb to invest.
      Property ‘experts’, ‘spruikers’, and ‘advisers’ all say the following things to convince new property investors to buy into a suburb…

      • It’s close to work
      • There are great schools in the area
      • It’s close to a shopping centre
      • There’s so many public transport options!
      • There a lovely park just around the corner

      Even a 10-year-old could probably guess these items. Don’t be fooled that you can buy a growth suburb with a ten point check-list.
      There are property markets that have had features like good transport, schools, employment, shopping and so on for decades. But they haven’t had above average capital growth for decades. So obviously this isn’t the key to strong capital growth.

      Some property markets will have a surge of growth for a few years and then sluggish growth for several more before surging yet again and repeating the cycle. But did the proximity to transport, schools, parks, shopping diminish for some years and then pick up again for those surge years? Of course not, these features were there the whole time.

      In the next post I will explain the science of supply vs demand. And I will uncover what is ‘true demand’.

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