Is Moree A Good Investment?
A lot of people have been asking me to question “Is Moree A Good Investment?” This post will look at some of the specifics of Moree but most importantly it will teach you the questions to ask about any area you wish to invest in.
Usually I steer away from answering questions this specific. I believe it is more important for you to learn how to find the answers yourself. At the end of the day, just because a website says somewhere is a good investment doesn’t always mean it will be a good investment for you.
So what are the questions you need to ask when asking “Is X a good place to invest?”
Is the population increasing or decreasing?
When the population is increasing this generally increasing the demand for housing. If supply is not keeping up with demand you get a natural increase in the price of housing. If the population is decreasing then demand for your property may also decrease.
How to: The census (done every five years) gives a pretty accurate representation of population. You can get the most recent figures on Wikipedia. Just search for the town or suburb.
What are the demographics of the area?
What are the age groups of people in the area? What percentage of people own their own home?
The demographics of the area will give you an idea of who your potential renters are and what their desires are. (Eg. If the average income is low they may not want a fancy house, but if the income is high there will be a higher demand for luxurious properties).
How to: Real Estate Investar have a tool that allows you to see not only important information on the town/area but also previous sale prices for this house, and what other houses in the area recently sold for.
What is the crime rate in the area?
I was once looking into a property that I could buy via owner financing with a 0% deposit and 0% interest rate and rent out for a large profit. But it was a small town and had an extremely high crime rate. So high they had banned alcohol consumption in the area.
This isn’t necessarily a bad thing, but it didn’t fit my investment criteria so I decided against it. Analyze what risk you are willing to take.
Where is the government housing in the area?
Buying close to government housing may effect your capital growth or potential rental return. Always find out where this is located and purchase your property appropriately.
How to: Speak to the local council or a real estate agent.
Is there one major employer or diverse employment?
Is the town supported by one major industry or company? Many mining towns exist because of the employment of one mine. If that shuts down then you will lose value in your property.
Take Port Hedland and South Hedland in WA as an example. Prices and rents are completely inflated due to the booming mines. If they were to shut down that could seriously effect property prices.
How to: Check the demographic and major employers. It may even be worth buying stocks in the companies and checking out hoe stable they are.
What changes or developments are happening in the area?
How to : Read the local paper and research (online) what is proposed for the area. Talk to the local council to gain even more information.
Does the area fit in with your investment strategy?
Before asking “Is Moree a good investment?” or any other place for that matter you first need to know your investment strategy.
The answer may be “Yes, it is a good investment…but not for you”. Will this area get you closer to your goals? If so then it I’d likely to be a good investment. If it will take you away from your goals then you may need to look elsewhere.
How to: Know your investment strategy and analyze risk vs return.
So, Is Moree A Good Investment?
That depends entirely on you and what you want for your investments. There is definite potential in the area, but there are also risks. At the end of the day it is the investor who makes the investment good or bad for themselves.
I didn’t give a yes or no answer to this question, but I hope I have provided you with some tools for asking yourself some important questions about any potential future investments.
Want more? Then read this post: How To Research An Area
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