There is a reason location comes up in almost every property conversation. The building itself can be renovated or improved, but its location cannot be changed. Choosing the right area is one of the most important decisions an investor makes, and it pays to look beyond the obvious.
Demand from tenants and buyers
A property only performs if people want to live there. Look for areas where demand is driven by lasting factors, such as access to jobs, transport and services. Strong tenant demand helps reduce vacancy periods, and strong buyer demand supports long-term value.
Access to employment
Areas close to major employment hubs, or with easy transport links to them, tend to attract a steady pool of tenants. It is worth understanding what drives the local economy and whether it relies heavily on a single industry.
Infrastructure and planned development
New transport links, hospitals, schools and shopping centres can change how people see an area. Planned infrastructure is worth researching, but look at what is funded and underway, not just what has been announced.
Lifestyle and amenities
Parks, cafes, schools, medical services and shops all shape how appealing an area is to live in. Think about who the likely tenants are, whether families, young professionals or retirees, and what matters most to them.
Supply of new housing
Demand is only half the story. If a large amount of new housing is coming onto the market in an area, it can put pressure on rents and prices. Understanding upcoming supply helps you avoid areas that may become oversupplied.
The mix of owners and renters
Areas with a healthy share of owner-occupiers often feel more settled and well maintained. At the same time, there needs to be enough rental demand to keep your property tenanted. Getting the balance right depends on your strategy.
Location should follow strategy
The best location for one investor is not always the best for another. Your budget, goals and whether you are prioritising growth, yield or a balance of both should guide where you look. Good location research starts with a clear strategy.
Want help finding the right market for your goals? The team at Mirren Investment Properties researches locations with your strategy in mind. Call us on 02 8814 5275 or book a free strategy session and we will help you find where your next property should be.
This article is general information only and does not take into account your personal objectives, situation or needs. Please seek professional advice before making any investment decisions.
