Location is critical to the long term performance of your investments.

The key is to look for suburbs, that have always outperformed the averages, or suburbs that are going through gentrification.

Generally, inner suburbs of the major capital cities are the best locations to invest for long-term capital growth, because of diverse employment & educational opportunities, no new land availability and general public demand.

Gentrification refers to the changing demographics of a particular suburb and also where incomes are growing, which directly affects people’s ability to pay higher prices for property.

Also, the changing demographic tends to bring in people, who are willing to invest their time and money into creating changes in their new neighbourhood.

Here are 6 stages of gentrification that will help you identify which suburb is about to undergo a metamorphosis:

• Keep an eye out on council/chamber of commerce meetings that point to future suburb changes/planning
• Planners, developers, government entities and the local community start to get involved in discussions
• Keep an eye out for any new development or community infrastructure projects like residential communities, hospitals, schools, road or rail projects
• Be aware of any specific new precincts like Doctor’s rooms which may be an indication of a new hospital being built
• Watch for population movements, especially social economic changes. When higher wages become part of the suburb landscape, property values start to climb.
• As more affluent people move into a suburb, they start to spend a great deal of their resources progressing the gentrification in their new community. 

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