Location is key

Location is probably the single biggest factor that will impact the future value of your investment. So irrespective of the type of property you're thinking about, aim for the best location you can afford.

Choosing the right location

An ideal location for an investment property is one offering good transport links, proximity to lifestyle features like shops, restaurants and parks, plus public amenities like schools and hospitals.

The vast majority of Australia's population live within 80kms of the ocean. This gives coastal areas, in particular metropolitan centres, the weight of numbers. Properties do cost more here but as a landlord you will have a broader pool of tenants to draw on and greater potential for capital growth.

Outer suburbs and regional areas are more affordable and the rental yields are typically strong, but for rents and values to rise, an area must experience growing demand, and this relies on population growth. Check that any regional location you are considering is supported by a range of industries and business activities that provide a robust local economy.

Research...

When you've narrowed down the locations you're interested in, research the state of the market in those areas. Keep an eye on vacancy rates, sales prices and rent returns as well as projected population growth.

Mortgage Choice broker tip

PropInvestlocationB1150.jpgHow can you spot an area with the opportunity for property growth?
Some indicators include:
Property demand exceeds supply - homes are sold quickly.
Prices are expected to rise in the near future.
Neighbouring suburbs are experiencing good capital growth.
Local developments are underway or planned for the area.
The area is home to thriving local businesses/industries.

Benefit from our local property knowledge. Talk to Mortgage Choice today.

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