Best Location to Buy Property: It’s So Simple

Have you ever heard a someone in real estate say, “it’s all about location, location, location”?

Well, it’s probably the easiest and most overlooked rule when it comes to investing in property.

So “what makes a location so important?” I hear you ask… Well, let me tell you a little story.

Once upon a time, in a land not too far away, there were two property investors: Investor A and Investor B.

Both were looking to purchase a new investment property, but they had different strategies.

Investor A: Blue Chip Capital Growth - Best Location to Buy Property

Investor A decided to buy a property in a Blue Chip suburb, close to amenities, with a vibrant community and excellent transport links. They knew this area was in high demand, and it would only grow more popular over time.

Investor B: Regional Cash Flow - Best Location to Buy Property

Investor B, on the other hand, went for a property in a less popular area. They thought they could save money on the purchase price and heard they could purchase a cash flow positive property.

Investor A’s property value skyrocketed, while Investor B’s property barely increased in value.

Why? Because the demand for properties in Investor A’s location never waned, while Investor B’s area never quite took off.

Truth be told… this isn’t some sort of fairy tale. I hear stories from people all the time who followed in the footsteps of Investor B. Maybe they were trying to eek out cash flow positive property, or maybe they were speculating in mining towns.

Sure, a few get rich and I know some investors that swear by regional property (and have made it a great success). But many investors I speak to share tales of a property that either struggles to find capital gains, or worse still, declines in value when the local industry packs up and heads to a new town.

Look for areas with strong infrastructure and amenities:

People love convenience, and they’ll pay a premium for it. Proximity to good schools, public transport, shops and entertainment options can be a significant selling point for potential tenants and buyers.

Pay attention to future developments:

Keep an eye on local council plans and new infrastructure projects. These can have a significant impact on property values, and you want to be ahead of the curve.

Stick to Blue Chip areas:

These are the areas that have a history of strong capital growth and demand. While they might be more expensive initially, the long-term returns are often worth it. These are the properties that I have built my entire portfolio on. Sure, I might forego $10-$20 a week cash flow in rent, but I also gains tens, if not hundreds of thousands of dollars in capital growth. I certainly know which one I’d prefer.

Don’t forget about supply and demand:

It’s the golden rule of property investment. Make sure you’re investing in an area with a limited supply of properties and strong demand, as this will help ensure your property’s value keeps on growing.

Well… sort of… but that’s a caravan.

And yes, I understand you can put a house on a truck these days…

But you get the picture.

Ready to find the best location to buy property? Book a time to chat directly into the calendar and start your journey to smart investing today!

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