We have all heard the saying at one time or another, “location, location, location”, as if nothing else matters and rightfully so. Location is the most important factor in determining the value of an investment property. What makes one property the ideal location for your primary home, may not necessarily mean that it is ideal for an investment property.
If you were given the choice of a home that is located at the end of the street in a quiet neighborhood and one that sits on the edge of the busiest street in town, it is obvious that you would take the house in the quiet neighborhood. The reason being that it is the most valuable of the two for you.
However, if you are planning to by a property as an investment, one in which you will never live yourself, there are other key factors that you must consider such as potential for growth as well as projected cash flow. Location is always a major deciding factor, but should not be your only consideration in the decision-making process.
How To Select The Best Investment Location
A number of strategies can be used to select the ideal location of your investment property, but here are some of the most helpful:
• Be news savvy. Read your local newspaper on a regular basis or subscribe to a service such as Google Alerts to stay on top of the latest real estate news. Use keywords like “real estate Australia” or “investing in real estate” to find the latest information and articles.
• Get to know the neighbors. Find someone who lives in the region and can give you valuable insight.
• See for yourself. Pay a visit to the area you are considering and spend a little time there. Talk with current residents and ask about the neighborhood. You should always visit a property or send an advocate to ensure everything is in proper order before you invest.
Following the simple steps before you invest will help you to know what you can expect before you invest.
Property Options Australia
Property Options Blog © 2006 – 2009
Hi Sean,
There are a lot of things that go into determining the ideal location. I think the most popular locations are those that are close to public transport, shopping centres; schools, parks and anything else that your buyers would need to be happy.
You have to know what your buyers want before you can give it to them.
It is always good to keep an ear to the ground when investing in real estate. Locals normally know what is going on a may give you a heads up on future developments so you can jump in before the rush.