FAST GROWTH
The emerging local economies set to boom!!!

Sleepy suburb today, booming metropolis tomorrow. Spotting an emerging local economy before it takes off can bring a property investor accelerated capital growth and strong rental returns. So where do you begin?

In many forms of investment, following the ‘buy low, sell high’ rule is the only way to succeed. So, as a property investor, how do you increase your chances of buying low, confident that at some point you’ll then be able to sell high?

Answer: spot an emerging local economy.

Every investor needs to understand what makes a location a good or a bad area in which to purchase a property. But being able to identify economic growth just before it takes off is the key to buying below market value, achieving maximum capital gains and, ultimately, growing your investment portfolio.

Understanding what drives property values, particularly in smaller cities and regional towns, will ensure you are better informed when you make your next investment purchase.

An emerging local economy needn’t be a one-horse town with some infrastructure in the pipeline; it can also be a large regional centre that is experiencing growth with the arrival of new industry. Newcastle and Orange in NSW, for example, are both benefitting from diversified industry as well as experiencing growth on the back of the resources sector.

Smart Property Investment in this feature looks at what drives economic growth in local areas, how investors can measure the economic stability of a regional market and how they can use this information to make profitable investment decisions.

Driving forces
Capital growth in emerging local economies is driven by a number of variables, known as ‘fundamental growth drivers’. These drivers are instrumental in pushing up property prices and include the growth of a local economy’s population, reduction in unemployment and increases in the demand for residential property in the area.

READ the full article in the latest issue of Smart Property Investment – ON SALE IN NEWSAGENTS NOW.

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