Ever wondered why some areas consistently outperform others in the property market?
The answer might surprise you – it’s affluence.
Sure, we all know that location matters. But whenever I buy a property I always consider the
wealth of the residents in the area.
In blue-chip suburbs, I’m not just trying to buy a property; I’m buying into a wealthy
ecosystem.
Think about it:
- Limited supply of land
- High demand from wealthy buyers
- Consistent income growth among residents
These factors create a perfect storm for long-term capital growth.
Take Sydney’s Eastern Suburbs, for example. There’s only so much land, but plenty of
wealthy people want to live there. A Sydney buyer’s agent considers this when presenting you with a personalised shortlist of properties.
And here’s the kicker – their incomes keep rising, pushing property prices even higher.
Compare that to regional areas or smaller cities. They might see short-term booms, but what
happens when investors stop buying?
Local incomes can’t support those inflated prices, leading to stagnation or even prices
falling.
So, what’s the lesson here?
Don’t chase quick gains. I always focus on areas with a track record of long-term growth and
affluent residents.
Remember, property investing is a marathon, not a sprint.
By leveraging the power of affluence, I’m setting myself up for consistent, long-term gains.
Henderson Advocacy is a reputable buyers agency with locations in Sydney, Newcastle and Brisbane. Our buyer’s agents are on top of all real estate market trends across all states and can provide personalised, informed advice to support your property investment goals. Contact today for your property advantage.
