When it comes to investing in properties, one of the most common question property investors ask is whether they should focus more on the type of property or the location.
Property types can include apartments, houses, units, villas and townhouses among others. Meanwhile, we have hundreds of suburbs in major cities across Australia to choose from. So which should you focus on more? Location or property?
How important is PROPERTY TYPE when buying a home?
There are certain advantages and disadvantages with different types of property. For instance, apartments tend to be more affordable and you’ll have less maintenance. However, you will also need to pay for additional costs like the body corporate fees.
On the other hand, houses may be more expensive but they often provide better capital growth.
Every property type has unique advantages and disadvantages so it’s important to take this into account before investing.
How important is LOCATION when buying a home?
When thinking about the location, the first thing that comes to mind is proximity to essential amenities that will have an appeal to prospective renters. A location will be considered more attractive by renters if it is situated near the central business district, public transportation, schools, hospitals, parks, and entertainment hubs.
Future infrastructure development can be also be critical in how successful your investment will be. For this reason, the favourite mantra of many property investors is “location, location, location.”
In the end, location and property type have to work hand-in-hand. There is no right answer as to which is the most important because this will be largely based on your investment goals, risk tolerance, and budget.
If you want to find the best investment loan product to finance your investment property, you can arrange a call with us today, or have a chat with us.