Blog Why location is important for property investment

Why location is important for property investment

11 August 2017
Why location is important for property investment

We often hear that “location, location, location” is the most important thing to consider when investing in property. This is because the right location really does matter in the property market.

It has a massive bearing on a property’s potential investment return and its overall desirability.  

The main criteria when looking for a good location is the potential growth and future development of the area. However, be careful because certain developments like a power plant or a dump site will have a negative effect. That’s why it’s imperative to do your research first before investing.

Here are some characteristics of an area that is suitable for a property investment.

  • Infrastructure – This is important because good infrastructure makes an area more desirable. It tends to increase the value of a property and the local employment rate. This translates to a low rental vacancy rate.
  • Amenities – People value convenience, so proximity to shops, restaurants, cafes, medical facilities, public services and parks will help add value to an investment property.
  • Safety – A safe neighbourhood is more desirable than an unsafe one. People want to live in a location where crime is low.
  • Transportation – The speed and ease of the commute to the city centre is important, whether it’s by car, bicycle, foot, or public transportation. A short walk to the train or bus station or easy access to the freeway can increase the value of your property.  
  • Schools – If the property is located within the catchment area of a good public school, it will tend to push up its price. Many young families also look for good primary schools that are a short walking distance. So investing in a property near a good school can be a winner.

These general qualities of a good location can help add value to your property. You can always renovate the house or the property but you cannot move it to another location.