A key part of the “Holy Trinity” of property investing is to find a property that offers the potential for high growth.
That’s why location plays such a huge role in your decision.
Choosing the wrong place at the wrong time could lead to your investment losing value!
You need to know the signs that an area’s set for a decline.
There are two that you need to look out for.
Sign #1 - No Major Projects Planned
The local infrastructure is one of the key drivers for growth in any suburb.
This covers everything from roads and railways...
...through to hospitals and shopping malls.
Looking at infrastructure development plans is almost like looking into the future...
...It shows you what the area’s going to look like several years down the line.
You’re looking for plans to build new roads and infrastructure...
...Or even major private infrastructure projects, like a shopping center.
That’s what attracts more businesses to a location...
...which creates the economic conditions needed for growth.
If you can’t find any plans for these sorts of improvements...
...the location may be on the decline, or at least flatlining.
Sign #2 - High Vacancy Rates
This is just a simple game of percentages.
If the vacancy rate is higher than 3%, this suggests that there’s more supply than demand.
That means you’re going to face a lot of competition when trying to find tenants.
Plus, potential tenants have more options so they’re spoilt for choice.
Be wary of any location that has a planned major residential development.
If 100 new units or houses get built after you buy your property...
...you’re going to struggle to find tenants.
Beyond this, high vacancy rates could also suggest that tenants simply struggle to afford to rent in the area...
...Maybe they’re moving away, which means there’s inherently more supply.
Either way, the location’s set for a decline from an investor’s perspective.
Of course, there are several more signs that a location may be about to decline.
Dashdot can help you navigate these pitfalls, to find success, and to avoid failure.
Are you ready to make a change in your life?
Do you want to use property investment as a vehicle for building your future?
Avoid buying in the wrong location.
And remember, stay awesome, and keep dreaming bigger.