How to choose the right spot

Head of Gumtree Property tells you what to look for. YOUR HOME IS YOUR CASTLE – BUT MAKE SURE YOU PICK AN INVESTMENT TOO

Every potential property investor wants to own a piece of real estate that will ensure long-term capital growth, but how exactly do you go about finding it? It may be well worth buying a beachfront property in a sleepy little town and wait for it to boom, but finding the next Paternoster is not as easy as it sounds.

All real estate investments are risky and pay off over the long run. Take your time to ensure you pick the right one.

It’s also worth signing up to sites that track pending building projects – if a school or mall is in the works, you may want to shop in the area.

Ask the right questions – what do people prefer to buy or rent in that area? Townhouses, freestanding homes, flats?

What are similar dwellings renting and selling for? Seafront properties will always have value.

With beachfront real estate, towns often enjoy a small boom, where after the municipality may become over-zealous and start overselling plots in order to cash in.

As the plots lay vacant, the prices drop – and that is the time to buy.

A home by the beach also has the added bonus of earning holiday rental income. But short of finding that holiday spot, aim to purchase in an area with easy access to the CBD and major freeways.

The more accessible an area is to a major employment hub, the greater the demand will be. Capital cities are pricey investments – land, building costs and professional services are already at a premium.

Instead, look at some outlying areas to cut your teeth on.

Look for a space that is popular with tourists or undergoing gentrification, where the population is expanding or employment is on the rise, or where retailers have announced they are extending their presence to. Set alerts up on online classifieds, follow project development and tender websites, sign up for the local paper and follow the neighborhood watch and police reports.

They all contain crucial information that will enable you to follow the infrastructure and the subsequent increase in rental/ sales demand.