Emerging Suburbs

Choosing Property Investment Locations

Location Location location

When investing in property location is one of your key factors to consider. Researching your location, and ensuring you are making a good purchasing decision can be the difference between purchasing a great investment, or ending up with a lemon. So when looking at locations what are the main considerations:

Rental Potential

The rental potential of a property is always going to add to the value. A house may be run down, and lack any street appeal, but if it is in an area of high rental demand, there is a good chance that it will still be a sound investment. Areas that typically have high rental demand would include places close to tertiary institutes and universities, students may not make the best tenants, but there is never a shortage in demand. Any where close to large employers. Hospitals are a good example. Places of convince, close to CBD’s or to key services such as public transport. Ask your self the question: “Who would live here?”

Desirable Locations

Certain locations are always going to be desirable. Beach front property, or property with an outstanding view, areas in big city CBD’s. Places like this sell at a premium, but they also hold their value, and if the market moves up, so does the value of your investment.

Emerging Suburbs

If there is investment going into other properties, or public amenities in an area, it is a good sign of growth in that area. If property developer has decided to build a new apartment block there, it is a good sign that there is demand. Keep you ears close to the ground and look for emerging areas of town.

Historical Areas of Capital Growth

Depending on where you live you may be able to get access to sales figures of areas around town. Look for areas that show a pattern of historical growth. Which suburbs have always been a good place to buy, chances are they will continue to be a good investment.

Know / find someone who lives in the area

You can normally get a good idea on an area by talking to someone that loves there. Are they happy, or are they always talking about wanting to move. If people don’t like living in an area it’s not likely to be a good investment.

Right place on the right street

Even having selected a good suburb to buy in isn’t the whole decision, you need to buy the right house on the right street. You might have heard the saying “buy the worst house on the best street.” If you are not planning on spending money on the property this may not hold true.

What to avoid – In general tenets dislike living close to:

• busy roads
• train lines
• airports
• next to schools
• industrial parks
• large powerlines or cell phone towers
• public toilets
• places that have large buildings blocking any view
• under common flight paths
• large venues where there will be late night sports or concerts