Which areas are experiencing good capital growth today, and which will in the future? We share this research with our clients when we are developing their personalised buying brief.
At Erskine + Owen we are focussed on building portfolios of great properties. Not just good, but great. You maybe thinking, “We’ve bought property before, we’ve got spare time, we like researching property, and we’re smart people…how hard can it be to get a GREAT property?”
But buying a great property that delivers above average capital growth is harder than you think. We are researching the market and sourcing property daily. It takes time to do it well. We want to help our clients buy great properties, not just settle for good ones.
Check out the graph below: (Source: REINZ/QV)
This is just one small example but it shows you that not all areas are created equal when it comes to price growth. Had you owned property during this period in Mt Roskill it would not have performed as well as Glen Eden. (Please note these suburbs have been used as examples to illustrate. They do not necessarily indicate Erskine + Owen’s current views on where/where not to purchase).
On the basis you bought for $300K, had you owned your property in Glen Eden during this period there would be $95K more equity in your property portfolio than you would had you owned a similar priced property in Mt Roskill. This additional equity would have enabled you to buy again sooner hence continuing to build your portfolio.
Dedicated to Research
It takes a huge amount of time to become intimately knowledgeable about all the factors driving capital growth. Our team is continuously researching the following, merging and interpreting it into meaningful information:
- Central and local government housing policy.
- Regional and local council urban infrastructure development.
- Roading and transport infrastructure.
- Population and demographic analysis and forecasts.
- Historical analysis of price and suburban performance.
We know where to buy, and what to buy in that area, to achieve continuous capital growth. And we share this research with our clients during our property profiling session, when we agree on where/what to buy.