When it comes to property investment, location is CRITICAL to your success.
Whether you’re a seasoned investor or just dipping your toes into the world of property investment, one thing remains constant – the significance of where your investment is located.
To help you along the journey, we’ve curated the X-factors to consider when determining where to buy your investment property and how to harness location as your GREATEST asset.
CONSISTENT POPULATION GROWTH
A massive influx of immigrants has driven Australia’s population growth over the past few years, whether it’s to relocate or for international studies. In fact, Melbourne recently surpassed Sydney to become the most populous city in the nation due to such growth.
This consistent population growth, observed in both metropolitan and regional areas, is a clear indicator that the demand for housing is set to rise. It is simple, people need a place to live.
INFRASTRUCTURE & EMPLOYMENT PRECINCTS
It is crucial to select locations with robust infrastructure networks and easy access to employment opportunities when investing in property. Property values can be significantly enhanced by the presence of current and future amenities.
For instance, improved roadways and efficient transportation systems tend to boost interest in regional areas. Faster travel to major cities and employment hubs becomes possible, while infrastructure projects generate employment opportunities, involving thousands of workers in their success.
Proximity to schools should also be taken into account, as it’s a considerable advantage when targeting families as potential buyers or tenants.
HIGH RENTAL YIELDS & LOW VACANCY RATES
Low vacancy rates offer higher rental yields, because renters are willing to pay a premium due to the limited housing options available. Landlords in such locations can take advantage of high demand to grow their rental income. Investing in locations where demand outstrips supply is a sound strategy for maximising returns.
Another crucial factor to consider when choosing where to invest in property is the appeal of the lifestyle in that area. Beyond financial returns, attractive locations provide a unique blend of amenities and experiences that enrich both the quality of life and the long-term value of the property. The best property investment locations also often boast schools, recreational opportunities, cultural attractions and vibrant communities, making them highly desirable for both residents and potential tenants.
Investing in a location with a strong lifestyle appeal can contribute to steady rental income and higher property appreciation rates. This ensures that your investment remains financially sound and personally fulfilling.
Affordability is a pivotal consideration. Locations like Perth are particularly attractive to investors due to their affordability, making property purchases more accessible. This opens up opportunities for a larger number of landlords to enter the market.
A recent PropTrack report highlighted a significant increase in home loan repayments, underscoring the importance of assessing one’s financial capacity when considering investment. In essence, affordability matters not only for renters but also for landlords.
In conclusion, choosing the right location is one of the most critical factors in property investment. That is why you need the right advice and resources behind you to ensure you are achieving both short-term and long-term financial success.
Interested in learning how we select the best locations to buy investment property?