Question:

How do I pick the best area for capital growth?

by Guest728  |  11 years ago

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How do I pick the best area for capital growth?

 Tags: Capital, growth, pick

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  1. Guest728

     Although it is human nature to want to find a bargain in an area of great capital growth, I believe it is false economy to spend a huge amount of time searching elsewhere for gems that are probably buried in your own backyard. It is virtually impossible, and really unnecessary, to gauge just where the most valuable suburbs will be in the future. It is far more important to find an area that you know well rather than try to guess the area that has maximum capital growth potential. History has shown that reasonably well-located property should follow the pattern of around 10 to 11% capital growth over the long-term. If your property achieves better than this, it's more likely good luck than good selection. Rather than spending weekend after weekend driving from one side of the city to the other, you can maximise your returns and better manage your investment by organising your finances in the best possible way and ensuring that you pay only fair market value in an area around your home with which you are familiar. Of course, this may not always be achievable, particularly if you live in an expensive suburb and you find that you have to go further afield to find suitable rental property.

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