I was reading an article in Propety Investor recently when I saw the following article which, to me, definitely rings true;

‘The Australian economy may or may not technically be in recession, depending on which economic commentator you choose to believe. But there’s no doubt that the local economy has suffered a serious blow in the wake of the global financial crisis, and unemployment is on the way up. But what does the downturn mean for the property market and property investors?

When it rains, dedicated hikers don’t call off their expeditions – they pull on their waterproof gear and surge forward to reach their destination. In an economic downturn, dedicated investors react much the same, seeking out bulletproof properties that will achieve their goals in the long term.’

It is a case of having to research that bit more carefully and ensure you are investing in suburbs that have seen recent growth and are going to continue this growth trend. It involves getting out there and researching the demographics of the areas to see what types of people are living in the area and who is likely to buy in what suburb, about finding out what future infrastructure is planned for the area, seeing if the council have any particular needs for the area that you could provide and so much more. It is a time when you will need to really research the area in which you want to buy, invest or develop but also a time when this research will pay off a lot more than at other stages of the economic cycle.