You Need to Understand the MARKET your Playing in!
Understand Your Market before Becoming a Property Developer.
You want to understand your market so that you can tailor your property to sell quickly. For instance, if you want to target your property for a family you need to make sure to consider the needs of a family.
You will need to pick a good location for families and make sure the house is set up with a family in mind. This plan will help you stick to your budget more successfully and will help you quickly sell the property. You would also want to consider the quality and location of local schools.
There is an old adage in real estate that there are only three important things to remember they are location, location and location! This old saying has validity for the home buyer who is purchasing his or her own personal home to live in.
However, the property investor has two other important considerations and they are finance and management.
Location refers to where the property is situated in relation to features and facilities desired by its occupants. It is the primary factor in capital gain performance and the rental income return of your investment. It needs to be considered at both macro (overall) and micro (street and suburb) levels.
The Macro level refers to buying in locations where there is good infrastructure i.e. on the spines of the city, along the coast, schools, shopping centres, public transport and locations that are going to give you high capital growth.
When considering the Micro level we look at exactly where the property is located. For example, is it on a main road where there is lots of traffic and noise? Is it backing parks or nature reserves? Does it have views? Is it on the right side of the street?
Price and growth can change depending on which side of the street it is on.