Does your next property investment location have access to these essential features?
Blogger: Damian Collins, managing director, Momentum Wealth
It’s not uncommon to be overloaded with information when searching for your next acquisition, but here are five must-have features for your next investment suburb.
Given the countless considerations that need to be taken into account when searching for an investment property, finding a high-performing investment property isn’t easy.
It requires extensive research – quite literally hundreds of hours if you want to do a thorough, and adequate, job.
What’s more, with so much conflicting information, it’s no surprise that many investors make the wrong decisions and waste their opportunity to grow their wealth through property.
However, here are five must-have features that your next investment suburb should include.
1. A vibrant activity centre
People will always want to live closer to vibrant activity centres where they can meet with friends and family. Café and retail strips should be in close proximity as well as major shopping precincts and supermarkets.
2. Within 10-25 kilometres of the city CBD
Properties within the 10-25 kilometre radius of the larger city CBDs are highly sought-after as urban sprawl continues to impact most Australian capital cities.
Land on the urban fringe can continually be developed to add new supply, which limits capital growth. However, most land within 10-25 kilometres of the larger city CBDs has been already developed, meaning new supply is limited, which will help to boost property values. In addition these locations are more likely to be re-rated by the market. Often many suburbs within 10 kilometres of the CBD have already experienced rejuvenation and re-rating.
3. Public transport links
Given many capital cities around Australia are suffering from urban sprawl, particularly congested roadways, it’s favourable to purchase investment properties near good public transport links. Ideally train stations are best, but a bus exchange can also be attractive.
4. Recreational facilities and parks
Well-maintained parks, fitness and recreation centres and other social amenities are sought-after by most and important features of an investment suburb. Not only do they provide an aesthetic appeal to the area, but they also provide lifestyle options that are attractive to residents.
5. Good schools and childcare centres
A major drawcard for families is living in areas with good schools and childcare centres. This is particularly the case for families wanting to live in catchment zones that contain high-performing public schools. The performance of public schools is accessible on the NAPLAN website.
While there are a number of other factors that need to be considered when buying a high-performing investment property, these five features represent a good starting point for your search.