An investor looking to fast-track their portfolio growth should understand the triggers of value rises so they understand where to invest before prices start to rise and popularity grows within Wellington suburbs.
Falling Vacancy Rate
Seeking suburbs with a declining rate in tenant vacancies is a perfect way to discover which Wellington suburbs will surge in value. As a general rule, low vacancy rates mean tenants are moving in and staying within these suburbs, creating shortages in rental accommodation for tenants currently on the market. Also consider, when property vacancy numbers fall. Rents will usually increase within these Wellington suburbs, creating higher returns for investors.
Low Levels Of Properties Selling In Suburb
Try hunting for Wellington suburbs with low property numbers being sold. Low property availability often means owners are less willing to let go of their properties because of increasing demand in the area, showing potentially profitable opportunities for Wellington investors who are willing to keep an eye out for properties entering the market.
Rising Number of Auctions
Auctions are a good indicator of a coming surge in value. When demand becomes strong, real estate agencies will generally hold auctions for properties, to enable potential buyers to outbid each other and drive up the price. Auctions are often only successful when popularity in the suburb is strong, making auction numbers a good indicator of the coming surge in value for the suburb.
Pursue suburbs that have been underperforming for extended periods yet are surrounded by suburbs that are rising in value. Usually the longer the underperformance period is, the quicker the recovery and rise in value and popularity for the Wellington suburb. So get in quick while property prices are lower than nearby areas to help create successful investments in suburbs that will soon be on the rise in popularity and value.