If you’re looking at buying a property and want to know the finer details about the area it’s in, you might want to consider using a suburb report. We’re here to explain what suburb report is and how can you use them to your advantage.
A suburb report is an essential resource if you’re looking to buy a home, whether you’re going to be an owner-occupier or an investor. It’s a comprehensive report of a suburb that breaks down key statistics, making it easy for you to decide whether the area is right for you.
In a suburb report you’ll find things like:
A map of the suburb
The population of the suburb
The number of dwellings
Properties currently for sale or for rent
The number of listings in the last year
The number of homeowners and renters
Median value of dwellings
Recently sold properties
Median days property is on the market
Annual rental yield.
Many of these statistics will also be broken down into further subgroups. For example, the median value of houses versus townhouses versus units. Or the percentage of men who are renting compared to buying.
There is such a wealth of information in a suburb report it can be a bit overwhelming. However, looking at a few key statistics can give you a huge amount of knowledge about the area and potentially give you a leg up against other buyers.
You’re able to analyse the current market activity in the suburb you’re looking at by looking at the estimated days on the market and the estimated number of property sales in the last three months. For example, the estimated days on the market is 100 and there have been 60 sales in the past three months, you can assume there is a strong demand for property in the area.
You can also look at street by street information, analysing which streets have the top median value for each property type. Combining this with information on recently sold property means you can leverage the real estate agent to give you the best possible deal on your desired property. It can also act as a safety net, so you don’t end up overpaying for a property.
Access and proximity to services
When you’re buying a property you have to think if the suburb is going to be able to facilitate your personal circumstances on a basic level. Are there grocery stores, schools, hospitals, and public transport hubs available nearby? The closer proximity a property is to these services the more desirable it will be.
Supply and demand
It’s important to know the demand for people wanting to move into the location you’re interested in and what new developments are in the pipeline. If a large number of people want to move into the area and vacancy rates drop that may be good for the time being, but if in a few years there’s a massive amount of finished developments and no one to populate them, the value of the area will drop, and your home with it.
Employment growth and consumer confidence
Locations that have strong employment growth usually have a strong correlation with wage growth. Furthermore, good jobs bring in people who want to work these jobs, pushing up the population. All of these factors then contribute to greater consumer confidence, where people have good jobs with money they feel confident in spending. This growth increases the overall value of an area and the value of your property.
Capital growth and demographics
Closely linked to the above point, growth in population, employment and wages, leads to capital growth. You can see the past capital growth of a location from the suburb report but looking to the future will require some work on your part. Looking at the demographics of an area can give you great insight into how the location will perform in the future. For example, an area with high wage growth and an influx of people will mean a higher disposable income. Demand for the location will increase which in turn pushes up the value.
To find out if the property you are eyeing is the right one for you, download a free property report from loans.com.au. The report includes extensive information about the property you are planning to buy from market-leading property research company CoreLogic.