How do you evaluate a neighbourhood?
When you’re looking for a new suburb to buy property in, don’t take everything at face value. Many factors influence the quality of life you’re going to have in a new neighbourhood. If you’re buying a new investment property, you should still consider the experience your tenants will have too. A tenant’s experience of a neighbourhood can influence just how much they’re willing to pay for rent and if they’re keen to stay.
Crime rates and employment opportunities are just two factors that can influence a buyer’s decision to settle down or invest in a new suburb. You’ll also find there’s plenty of data available on local house prices. This information can be used to help you predict if house prices in a suburb are likely to stagnate or increase over the years to come.
With so much information available at our fingertips, it’s never been easier to evaluate a neighbourhood. In today’s article, we’re breaking down all the essential information you’ll need to see whether or not a suburb is right for you.
Are you looking to buy a new property as an investment or to live in? Either way, you’ll want the value of your house to increase if you ever want to sell it in the future. Over time, the average house price will grow no matter which suburb you’re looking at. Some suburbs tend to increase in value significantly faster than others. You’ll also find some suburbs continue to fluctuate drastically in price.
One of the best ways to predict how a suburb’s house prices will change is to look at its historical data. Look back at the average house prices for the last 15-20 years. The best performing suburbs are the ones that have a pattern of gradual price appreciation. Try to avoid suburbs that have experienced multiple spikes and corrections.
While you may be comfortable with your current job, it helps to have more employment opportunities close to home. Look for any major employers in the suburb you’re thinking of buying in. Larger companies tend to attract higher salaries which can increase the average household income in the area.
You’ll find various real estate websites that show you information such as the average household income for a suburb. Using this information, look for suburbs that have average incomes higher than the median income in your state. This is an easy way to determine if there are favourable employment opportunities in the area or within reach of public transport.
Safety and crime rates
No one wants to live in a suburb that doesn’t feel safe and secure. If you’re concerned about how safe your new suburb may be, there are easy ways to check. Local law enforcement and the local council for the suburb should be able to provide you with useful resources on safety in the area.
Visit the official police website for your state, and there you’ll be able to find information on crime. There is plenty of data available for crime rates for local councils and suburbs. Some websites even provide specific breakdowns on the types of crime, such as theft and property damage.
Have a look at the crime rate over the last ten years and see if there are any patterns. Are crime rates increasing or decreasing? An escalating crime rate could be an indicator of stagnant or decreasing house prices for the future—which isn’t favourable if you’re looking to buy an investment property in the area.
Pride of ownership
The value of a neighbourhood can be boosted by the pride that locals have in their properties. When tenants and homeowners properly maintain their homes, the results are more than just cosmetic. Houses that maintain a sharp appearance often help raise the average house price of a suburb.
So don’t be afraid to look around at the houses in a prospective suburb. Are the yards free of garbage? Are the plants maintained and not overgrown? Do the houses look weathered or have they been properly maintained with a new coat of paint? Ask yourself these questions if you’re not entirely sold on a particular suburb.
Discover the potential of Clyde North
So if you’re looking to buy a property soon, don’t forget there’s plenty of data available to help you evaluate a suburb. There’s no need to rush a decision like this either. Make sure you have all the information you can get on a new suburb before you commit to a purchase. With the right information at your fingertips, you can make a confident decision for your next house.
Clyde North is shaping up to be a Victorian suburb with plenty of growth potential. New house and land packages continue to be released, and it’s not too late to invest. New investments in transport and infrastructure are set to make this area grow in the not too distant future.
Five squared is one of the leading property developers in Clyde North today. With over 50 years of experience in Australia, the developer has effectively transformed many suburbs into the thriving Aussie communities you see today.
Visit the New Bloom website and discover what house and land packages are available from Five Squared.