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10 micro factors for achieving higher growth

05 FEB 2020 • By Cameron Micallef • 2 min read • Investor Strategy

Property investors are being warned that the traditional hotspot of a city or suburb might need to be rejigged as property buyers are being more selective in their approaches.

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Bridget Kraft, property researcher for Property Club, suggested that investors take a “street by street” approach to investment properties as tenants follow buyers and become more selective.

“This trend has been facilitated by the easy access of information available via digital media, and as a result buyers and tenants are much more informed in their decision making about moving into a new property compared to a decade ago,” the property researcher said.

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Ms Kraft believes tenants are taking a micro approach when selecting where they want to live, and property investors need to follow by taking the same approach.  

“For example, buyers and tenants are now increasingly focused on the eco-friendly features of a home. 

 
 

“This is just one of a range of micro factors that will result in homes properties in a well located suburb achieving higher rates of capital growth compared to other homes just a few streets away,” Ms Kraft explained.

Ms Kraft suggested that investors follow 10 key micro factors when they are looking to purchase an investment property:

  1. Environment. Does the property have a northerly aspect to enhance energy efficiency? Has the property energy efficiency features that will reduce power bill?
  2. Is the property within a five-minute walk of minor or major shops? Does the property have a good walk score?
  3. Has the property a “wow” factor that sets it apart from other properties in the local area? Has the builder of the property won awards?
  4. How accessible is public transport and educational facilities from the property?
  5. Exterior construction. Is the property made from lightweight construction materials? Buyers and tenants are increasingly favouring homes made of brick construction as they seem to be more durable and safer.
  6. Is the property located close to infrastructure that may have a negative impact such traffic and noise or power lines?
  7. How secure and private is the property?
  8. How easy is it for vehicles and pedestrians to access the building? Does the building have sufficient parking space?
  9. Are there any lifestyle attractions close by such as parks?
  10. Is the property close to major employment hubs such as the CBD or satellite city, major hospital, university or industrial area?

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