Thanks to the team at Your Money for allowing me to run with this story, for those who missed it on Saturdays Auction day program see below:
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“Speaking to Auction Day, buyer’s agent Zoran Solano explained how to find the next blue chip suburb and a property that will thrive even the toughest downturn.
Blue-chip suburbs are those that are poised to achieve prestige status, pre-empting a surge in demand and value.
Here are five things to look for to find blue chip properties, according to the Hot Property buyer’s agent.
1. Proximity to premium suburbs
One of the key indicators of what might be in store for a suburb is who its neighbours are.
Solano says to keep an eye out for what he calls “bridesmaid suburbs”, areas that border on premium suburbs, and are likely to be the next big thing.
2. Central location
The closer a suburb is to the CBD, the more likely it is to be a blue chip suburb, according to Solano. The reasons are two-fold.
Firstly a central location ensures a proximity to the kind of amenities that lifestyle buyers are looking for.
The second is this generally prevents the suburb from falling in or near a growth corridor, ensuring that a boom in supply isn’t going to cannonball your valuation.
Often what really can set a prestige property aside are the views a property can offer.
Think of properties in Bellevue Hills that offer birds-eye views of Sydney’s CBD and the coast.
By offering breathtaking views, a blue chip property can ensure there will always be heightened demand.
It’s well-known that run-down inner city suburbs can quickly gentrify into something special.
By looking at suburbs mid-transformation, you can spot the cafe culture that is always popular with buyers looking for their next home.
In doing so it can make sense to ignore the traditional idea of buying ‘the worst house on the best street’, and instead finding the ‘best house on the worst street’, knowing the valuation of the street, and the suburb more broadly, will improve.
Obviously in pre-empting the market, you’re looking for value with growth potential.
By comparing the median prices of suburbs, you can check that you’re not simply jumping on the bandwagon and instead are thinking long-term.”