Finding the next hot real estate markets can be as simple as looking at their “major neighbors.” Find out how one expert uses just two simple elements to identify the best investment suburbs in Australia: Affordability and gentrification are the most important factors to consider when looking for places to buy investment properties, according to the president of the Property Investment Professionals of Australia (PIPA). Pierre Koulizos. While these elements are available in highly technical data reports, the real estate expert said a simple understanding of a location's surrounding areas can help investors get the most out of their research and ultimately , to determine the best decisions for the growth of their portfolio. to plagiarism. Get a tailor-made essay on 'Why violent video games should not be banned'?Get an original essay 'Undervalued properties' Property Investment Professionals of Australia (PIPA) president Peter Koulizos said he was looking for above all “undervalued areas”. » which are comparable to the privileged suburbs of the city or other large markets. These privileged suburbs are naturally where people would want to live. As demand increases, prices also increase. Over time, more and more people will find themselves unable to afford property in the area. Therefore, instead of spending too much money to enter expensive markets, smart investors would look for the more affordable "neighbor suburbs", where demand will eventually increase as people look for cheaper alternatives to the prime suburbs. . Mr Koulizos said: “Prime areas are where a lot of people want to live, but surely that can't last long because even if people want to live in this prime suburb, they can't afford it. “So, I look for suburbs where the median price is lower than other surrounding suburbs. These suburbs are more affordable and have similar amenities because you're just next door. It may be a little further from the shops or the train station, but it's very close. “However, he cautioned investors against flocking to the first affordable suburb they can find: be sure to compare apples to apples,” he said. “One of the reasons the median price might be lower is that this suburb is full of factories. Take the time to go to the suburbs and see that it's a lot like the main suburbs, except the houses are $100,000 cheaper. » “In Sydney, Marrickville is next to Stanmore but Stanmore is much more expensive. This area of ​​Marrickville near Stanmore, where you don’t know if you’re in Marrickville or Stanmore, that’s the kind of thing I’m looking for,” the property expert pointed out. Gentrification In addition to property values, Koulizos also emphasizes the importance of understanding gentrification and its effects on the real estate market. Gentrification is essentially the increase of middle- and high-income housing to replace low-income housing in a particular neighborhood. “Gentrified suburbs are areas where no one wanted to live in the past, but are highly desirable today,” he explained. Often, suburbs that have experienced gentrification are close to the water, with historic or characterful buildings, according to Koulizos. While Australia is too young a nation to experience centuries of gentrification, Mr Koulizos hopes its.