When I hear about hot suburbs, especially those suburbs have been around since day dot but never grow in prices, and they are sandwiched between some established ones, you should ask the question, "why they never grow like others until now?"
We must not take all the gurus' and experts' advice at face value. The growth can be just a spike due to some gimmicky promotion, and hype generated for one reason or another. Without personal visit to those suburbs, DO NOT just bet your money on it, even the words come out from my mouth
Looking at data alone is not sufficient, unless more details are supplied about the underlying reasons. Some suburbs do not grow, but hit a bonanza suddenly due to new land release resulting in more availability of home-and-packages. The new homes generally have varying prices; more at the lower price range than the higher one. Given a certain week, new and existing homes are sold concurrently. To the ignorant and unsuspecting buyers, they all think that the high "median price" means some of the old homes really worth that much.
Have some of the properties jumped by 20%, 30% or even more? Not necessarily so. It might only mean the new house prices are overpriced. If they are not, then the the increase may be due to the added cost of new appliances, landscaped garden, new furnishing and light fittings, etc being thrown in.
Some developers may give a rental guarantee of 6% for 2 years. If a new property is supposedly worth $400,000, the rental guarantee of $48,000 is likely to have costed in. If this amount is removed from the equation, the worth of the property is $352,000. Once all these new properties are sold, the price and therefore the median price will become stable again.
As usual, I do encourage you to take a drive in the suburbs mentioned in the linked article, and decide for yourself whether you would live or invest in those suburbs. Do keep your eyes open and see whether there are new land sites or home-and-packages on sale or just being sold recently.
Thank you for reading.
Click on the link to read What to expect in 2018
We must not take all the gurus' and experts' advice at face value. The growth can be just a spike due to some gimmicky promotion, and hype generated for one reason or another. Without personal visit to those suburbs, DO NOT just bet your money on it, even the words come out from my mouth
Looking at data alone is not sufficient, unless more details are supplied about the underlying reasons. Some suburbs do not grow, but hit a bonanza suddenly due to new land release resulting in more availability of home-and-packages. The new homes generally have varying prices; more at the lower price range than the higher one. Given a certain week, new and existing homes are sold concurrently. To the ignorant and unsuspecting buyers, they all think that the high "median price" means some of the old homes really worth that much.
Have some of the properties jumped by 20%, 30% or even more? Not necessarily so. It might only mean the new house prices are overpriced. If they are not, then the the increase may be due to the added cost of new appliances, landscaped garden, new furnishing and light fittings, etc being thrown in.
Some developers may give a rental guarantee of 6% for 2 years. If a new property is supposedly worth $400,000, the rental guarantee of $48,000 is likely to have costed in. If this amount is removed from the equation, the worth of the property is $352,000. Once all these new properties are sold, the price and therefore the median price will become stable again.
As usual, I do encourage you to take a drive in the suburbs mentioned in the linked article, and decide for yourself whether you would live or invest in those suburbs. Do keep your eyes open and see whether there are new land sites or home-and-packages on sale or just being sold recently.
Thank you for reading.
Click on the link to read What to expect in 2018
