(November 2023 Blog) How To Choose A Quality Location For Your Investment Property

New data from CBRE and PropTrack found that suburbs along the unfinished Sydney Metro have seen an impressive 49%  rise in capital value over the past ten years, significantly outperforming their peer group. 

For instance, the Metro line suburb of Castle Hill has seen home prices grow a staggering 72% over that timeframe, dwarfing the 49% growth in neighbouring Baulkham Hills. Similarly, Crows Nest has seen a 79% increase in capital value, compared to 62% in Cammeray. 

This research highlights that when it comes to property investment, location is king. That’s because the right location can mean the difference between achieving mediocre and outstanding returns. 

And it's not just about the here and now; it's about predicting the future potential of an area. 

But what makes a city or neighbourhood a great place to invest in?  

Here are some factors to consider: 

Infrastructure developments 

As illustrated by the Sydney Metro example, infrastructure projects can significantly boost property values in the surrounding areas. Look for neighbourhoods with planned or ongoing infrastructure developments like public transport improvements, new schools, or healthcare facilities. These improvements not only make the area more desirable but can also lead to job creation, which in turn increases demand for housing. 

Economic growth and employment opportunities 

Talking of which, areas with a strong and diverse economy often provide a more stable investment environment.  

Look for locations with a healthy job market and potential for future growth. A diverse economy can also shield the area from job losses in any single sector, making it a safer bet for long-term investment. 

Population trends  

Areas experiencing population growth usually have increased demand for housing. This can lead to both capital growth and rental yield opportunities. Research the demographics of an area and consider factors like average age, family composition, and population growth forecasts. 

Public transport links 

Areas well-connected by public transport are often more desirable. This is especially true in major cities where traffic congestion can be a concern. Properties near train stations, bus routes, or in the vicinity of major roads can have an edge. 

Safety and community  

Neighbourhoods with low crime rates and a sense of community are often more desirable for both renters and buyers. Check crime statistics and consider the general atmosphere of the neighbourhood. 

Supply and demand dynamics 

Finally, understanding the supply and demand dynamics of a location is crucial. Oversupply of properties can lead to lower rental yields and slower capital growth. Look for areas where demand outstrips supply, but also be wary of areas where too much development might lead to future oversupply. 

Looking to buy a quality investment property? As an expert buyer’s agent, A Game Property Advisory can help you secure a quality property at a good price. Get in touch with Jim by calling 0422 446 170 or emailing jim@agameadvisory.com.au.