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How to Spot a High-Growth Investment Location

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One of the biggest reasons to why new property investors fail is due to purchasing investments in the wrong location, according to Lianna Pan, co-founder of FreedomInvestment Property.

“To maximise your profits from property investing, you need to buy in a growth location. Generally, this is any area that’s set for either a recovery or a boost that will lead to property price increases,” said Pan.

Pan shares her key indicators to look for:


1. PLENTY OF PLANNED PUBLIC SPENDING PROJECTS 

Planned public spending shows you that the government’s invested in a location. They’re aiming to make it more prosperous and thus,
more attractive. If you see plenty of planned spending, that’s a good sign that a location’s set for growth.


2. VENDOR DISCOUNTS HAVE DRIED UP 

To get a handle on supply and demand, it’s a good idea to look at the vendor discount stats. The higher the number of vendors offering discounts, the harder it is to sell in a location. This suggests low demand, which also means low growth. Your goal is to buy at the peak of the discounting period so that you can benefit from the growth that’s yet to come.


3. AUCTION CLEARANCE RATES ARE ON THE RISE 

While it’s not a perfect indication of supply and demand, auction clearance rates can provide some insight. The higher the clearance rate, the more demand there is for property in the location. Of course, a declining rate shows us that a location may have more supply than needed for the demand.

For more information, visit freedompropertyinvestors.com.au.

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