Location Location Location… Is it everything?

Dilleen Property Group 2023

Location location location… This is a common phrase you hear from the media when it comes to property investing. But is location the only thing that’s important when looking for an investment property?

Property investment comes down to a lot of different factors, just choosing the ‘right’ location isn’t enough.

The way you buy the property and the property deal itself is much more important. This means buying below-market value, having good rental returns and buying in a metro area with infrastructures close by should be of top priority.

Many investors are too focused on purchasing in the ‘best’ suburb and are spending too much time analysing which suburb will become the next hotspot. Their emotions associated with property investment can cause them to have a bias toward certain suburbs, which influences them to purchase in suburbs they see as ‘better’ without paying attention to the statistics.

Suburbs considered of lower socioeconomic status tend to be avoided by investors as they are worried about bad tenants or the graffiti around residential areas affecting property value. However, this is not always the case as it depends on the facts and figures of the individual property itself as well as the gentrification aspects of the area. Suburbs that may be considered 'rough' or with higher crime rates but have major infrastructure projects in the works and in close proximity to the CBD should not be overlooked. Many properties with amazing growth are actually located in these areas, as long as they are bought below comparable sales, have good rental return and are located within 40 minutes to the CBD, they can outperform properties bought within the more popular suburbs or the so-called “hot spot” areas.

Conclusion

Property investment is not just about where you buy the property, it is more about how you buy the property. The way you structure your deal has a large impact on the results of your investment. You should always aim to make money while buying the property rather than buying an overpriced property and waiting years for it to grow in value. If you’re looking to build your portfolio and require assistance or have an inquiry about what investment strategy to use, feel free to contact us here to learn more about our services and investment strategy.

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.