You've probably heard the saying many times before, 'location, location, location.' It's a phrase that almost every investor has heard at least once.
There are so many factors to consider when determining the best place for an investment property and we are here to share them with you.
Whether you're a starting or savvy investor, there's a lot to understand about the importance of location. Finding the right 'hotspot' is comprised of many factors. Ultimately, you need to consider the potential tenants when buying property and how they will benefit from the location that you will be investing in.
If you treat your investment property as a business operation, you'll understand it's nothing more than a mutual business exchange between you and your tenants.
Important location factors
There are a number of location related factors to consider when buying an investment property. These include; accessibility to amenities, infrastructure projects, supply and demand, and population growth. Other factors to consider are access to public transit and freeways, views and whether or not the property is part of a safe location.
Amenities
Amenities are a useful feature or space designed to benefit residents. Depending on the type of property that you purchase as an investor, there are public and private amenities that your residents can have access to.
Public amenities include;
- parks
- education facilities (i.e. schools and universities)
- shopping centres
- cafes
- hospitals
- public transport
If you're buying an investment property such as an apartment or townhouse, they come with private amenities. These are comprised of gyms, pools, rooftop areas and carparks.
Infrastructure
If you're looking for the best place purchase an investment property you need to consider the infrastructure of the location that you're buying into. Infrastructure projects are important as they contribute to employment opportunities and provide many benefits for communities and residents. This element is important to consider when buying an investment property because it's an essential factor to modern living.
Examples of infrastructure include;
- utilities: gas, communications, internet and water
- transport: airports, roadways, train and public transport options
- social aspects: education facilities, hospitals and community facilities.
Supply and Demand
Supply and demand should be considered by investors. The more demand that there is for a specific location correlates to an increase in property value. As population within an area grows, the supply decreases, meaning that house prices go up.
High demand 'hotspots' are generally desirable for people who are wanting to relocate and live there. This makes this the best place to buy property for an investment, as investors will see a greater return on their property purchase.
Population Growth
With relation to supply and demand, population growth means that more people will need homes. Property investors seek locations where there are high population growth forecasts. This then influences the creation and support of infrastructure projects and the rise in employment opportunities to meet these forecasts and provide for the community.
We support investors
Real Estate Investment Finance are working endlessly to support clients to find the best place to buy property for investment purposes. E If you're looking for a team to provide you with access to over 10,000 properties, we can help. Our Founder and CEO, David Chehade, details this in our Location video below:
Reach Out
For more information regarding location or financial investment, please reach out. We have a team of finance and property specialists who are working across the country to help people achieve their dream of owning and building wealth through property.
Ph: 1300 130 932
Email: clientservices@reif.com.au
