3 ways to spot an up-and-coming suburbWhen it comes to maximizing returns on real estate investments, it's all about location, location, location. Knowing where (and when) to purchase can make a significant difference in the kinds of returns one can expect to generate. © lightpoet – 123RF.com Grant Gavin, real estate expert and broker/owner of RE/MAX Panache lists his top three tips on how to spot an up-and-coming suburb:
Quite opposite to the points discussed above, Gavin also warns buyers of the potential red flags that signify that a suburb is about to lower in value. “Vacancies and rental decreases are a sure sign that demand is dwindling. Investors should also watch for municipal planning changes where industrial or commercial zones start invading residential spaces. Similarly, suburb deterioration can happen very quickly when municipalities neglect basic services, so keep an eye out for municipal parks and common spaces looking over-grown and piling up with litter.” As a final piece of advice, Gavin suggests that there are several ways for investors to keep up to date with the latest investment hot spots, including befriending a network of reliable real estate advisors. “Nobody knows an area better than those who work on the ground every single day. My advice to investors is to build a network of productive real estate professionals who know the market nuances better than anyone else and can keep you abreast of real time property sales per square metre pricing, rental yields, number of days on market, and % of selling price to asking price,” Gavin concludes. |