What do you think influences your property’s performance the most over the medium to long term? As the old adage goes, the three most important factors in determining the desirability of a property are “Location, Location, Location”.
It is always best to do your research, but as veteran property commentator Michael Matusik believes, the six most important factors to consider when purchasing an investment property are:
- A minimum of five pillars of economic support. Avoid like the plague one, two and three horse towns.
- As a general rule, you cannot buy close enough to the GPO.
- You also cannot get close enough to ‘hard-core’ infrastructure – i.e. railway stations; hospitals; major retail centres and places of work.
- Buy in areas where at least two-thirds of the existing residents are owner-residents. You want your investment property to have some serious appeal to the largest market – owner residents – when it comes time to resell.
- Avoid main roads; buy on the best side of the suburbs (they all have good and bad sides) and get the aspect/outlook right.
- And if that is all too hard, Google Walkscore, enter the street address and if the result is fewer than 80 out of 100, consider something else. Try it on your property here.
What are your key ideas when looking to buy an investment property? Feel free to share them on our Red & Co Facebook page.