Property Investment Tips: How to effectively use suburb reports

By the resi financial blog team, 16 January 2015

Property Investment Tips: How to effectively use suburb reports

Property and suburb reports are informative, but they are also much more than just a good source of information. A well-researched report will help you make decisions and may even be a good bargaining tool in private sales.

What's in a report? - and how can you use it?

A suburb report gives you instant access to a profile of the area, including the kind of people that live there, the neighbourhood's average earnings and whether people mostly own or rent their homes.

Using this information, you can determine what kind of tenants you could expect. You will  be able to roughly estimate whether your tenant is going to be a high- or low-income earner, whether they have children, what age they could be and much more.

Key statistics include property prices relative to the surrounding area, as well as rental prices. This will help you to determine whether you are getting a good buy or not. You should also be able to tell whether the neighbourhood is suitable for your particular strategy, whether that be positive or negative gearing, positive cash flow or long term capital gains.

Graphic representations of historic sales prices will also allow you to see a trend of property values in the area. Armed with this information you will know what kind of growth to expect in the coming years.

Aside from helping you to identify areas and specific properties that would suit your portfolio goals, a good property report will also be a key negotiating tool. If any of the information contained in the report reveals a weakness in the property, this could either be a tell-tale sign that it's time to move on, or it could be used to bargain the vendor down to a more reasonable figure.

For your free suburb report, and to find out more about how they can help with your property search or how to make the most of your investment home loan, talk to a resi loan specialist today.

Categories: Property Investment