Finding the best suburb to buy an investment property
If building your wealth by investing in property is one of your 2019 goals, it’s time to research potential properties – and locations.
In this article, we’ll share a few tips for selecting the perfect suburb to buy an investment property in. Remember, the location should really be your number one priority when exploring the market. Let’s get right to it.
Your investment budget
Investing in property is a massive decision, and one of the key aspects of that decision is determining your budget. It’s a good idea to lock in a feasible budget before you decide on a suburb, as different suburbs come with different median price tags. We suggest only looking in suburbs you can afford to invest in.
Say you only have the budget for an apartment, is it wise to purchase an apartment in a suburb that consists primarily of families? Probably not. Instead, you might like to look in areas favoured by young professionals. Ideally, you should match the property type to the suburb’s demographics because you’ll always have tenants looking to rent your property.
Outer-city suburbs can be an incredibly lucrative option for property investors, especially if they are well connected with public transport or offer a relatively easy commute. Many people working in the city look to fringe suburbs for more space and a more relaxed lifestyle. You can capitalise on this with your investment property.
Schools, hospitals, and other amenities
Suburbs that offer good schools, excellent healthcare facilities, parks, footpaths, supermarkets, and other amenities will always be attractive to potential tenants. Bonus points if your property is within walking distance!
Price growth in the area
At the end of the day, you want to invest in property to build your wealth. For that reason, accessing historic median price data for different suburbs to determine whether or not, on average, the suburbs you are considering offer a price growth or decline is a good idea.
Research, research, research!
Property investment is a huge decision that requires ample planning and lots of research. Remember, if you are considering multiple properties, take a good look at each suburb’s analytical data to compare. Best of luck with your 2019 property endeavours.