Location, Location

You can always renovate, but you can’t change a bad location. So what do you look for when choosing where to live or invest?

Selecting your suburb
When you buy a home or investment property, you want to maximise capital growth. So when selecting your area, choose somewhere with a stable or increasing population and strong future growth potential. It should be located within 100km of a CBD offering good employment options.

Lifestyle
Unless you’re after a more unusual property like an acreage, you can’t go wrong with a home located near shops, cafés and restaurants, schools and regular public transport. Public facilities like libraries and parklands, close proximity to a beach and being just a short drive to the area’s business hub are also major plusses.

Type of property
Strata titled apartments do involve higher costs, particularly if the building includes resort facilities like pools and gyms, and you will have to deal with the body corporate. While company title apartments are generally cheaper, bear in mind that same rule will also apply when you sell it. If you choose to buy off the plan, you should do some research on the reputation of the developer.

Type of property
An investment property should be affordable and attractive to potential tenants living in that area. Look at the area’s median income, and the rent should not exceed 30-40% of that figure.

Consider your cash flow versus potential capital gains. Income from an investment property should ideally cover all of your repayments, landlord insurance, property management fees and any maintenance.

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