‘Location, location, location’ is a phrase often quoted in property by homeowners and investors alike. Indeed, the phrase was thought to be attributed to Lord Harold Samuel, a British real estate tycoon. However according to the Yale Book of Quotations, the phrase was first used in a real estate classified ad in the Chicago Tribune in 1926. Lord Samuel would’ve been just 14 years old at the time.
Regardless of where the quote came from, for the property investor location is particularly pertinent if you want to get the best from your investment.
Here are some points to consider:
Close to Public Transport
Urban sprawl is now a given around Newcastle and Cardiff, and many people want to avoid traffic congestion. Generally, an investment with good public transport links will attract more tenants and your property will be less likely to stand empty for any length of time.
Proximity to Employment Centres
While country living is something many dream about, for an investor, a country property may be harder to rent out. Many investors buy in areas close to employment centres, and this might not necessarily be the CBD. There are employment opportunities in other areas and these are rapidly becoming more attractive for people to work in if they’re looking to avoid a daily commute.
It’s also worth remembering properties in locations close to employment centres may experience higher capital growth over time. This means you may also achieve higher rental growth than those in areas.
People will often want to live near vibrant activity centres with different lifestyle options and attractive places where they can meet with family and friends. A property close to cafes, restaurants, retail strips and shopping centres is always attractive and areas with well-maintained parks, fitness and recreation centres offer good investment opportunities.
However, remember, if you’re too close to the hive of activity, noise, parking and traffic issues may deter some people.
Schools and Childcare
For an investor looking for a larger property, families will often look for an area with good schools and quality childcare. If you want to know how a school is performing in an area, look at the NAPLAN website, www.naplan.edu.au.
We’ve said it before in our article on what to look for in an investment property people will live anywhere, however generally people want to live in a safe area with a low crime rate.
The More The Merrier
Look for suburbs with a broad demographic mix of young people, family and retirees, that way your property will be attractive to a wider mix of people.
If you would like to know more about what to consider in a property investment, or learn more about our property management services, give us a call on 02 4954 8833 or pop into our office and our experienced team will be happy to help out.