I'm a relatively new property investor. I just recently bought a unit in Cabramatta. This was about 3 months ago and I bought my unit out of pure luck, without really knowing anything about due diligence or approaches to buying property for $210K.
The unit is 2 bedroom, 1 bathroom, balcony, brand new 120 m2! Now there are other brand new units in the block that are exactly the same and the price for the same comparable units is around $240K! Can you believe it? This is a 14% increase in just 3 months!
Are there any share holders out there? Please tell me when the last time you made 14% profit on a stock was? Come on, please do tell!
OK, so I did also mention that I lucked into it. because I had a tip from a friend who lives in Cabramatta that the block was being eyed for major renovations and developments. Yes, I was lucky but you too can do this if you exercise due diligence before the purchase of your home to ensure you're getting a good deal!
Would anyone out there like to share their methods? What's the first thing you look at? The demographics of the neighbourhood? The cars in the neighbourhood? probably wouldn't want too many beat up looking cars as this seems to signal that things are on a down slide. I used to think that the move of gay people into a neighbourhood was sure signs of gentrification, especially in the inner city dump neighbourhoods. So what are your methods? How do you pick them?
Thanks for sharing!