That sweet spot – how to choose the location for your next investment

When choosing our own home, it’s easy to be swayed by emotional decisions such as living close to friends, family and our workplaces, let alone falling in love with the lifestyle created by the home. None of these apply when purchasing your investment, which opens up a lot more scope to choose wisely (head over heart, people!).

However, when there is more choice, often there can be some overwhelm. So, I want this blog to guide you through the process so you find a property investment that will maximise your return.

Firstly, review the vacancy rates. It’s a good time to be a property owner in Perth (although I’ve said that for a while, the market doesn’t seem to be slowing down!), but it’s important to check where vacancy rates are low which means your property will not be empty for long between tenants. Also, a location with high vacancy rates will be harder to sell in the future.

Consider your future tenants who will, like you, be imagining how their lifestyle will look in your property. Make sure there is access to schools (and ideally, good schools with high ranking), shopping centres, hospitals and gyms – the modern conveniences that many of us like to be within a walk or short drive of.

Be aware of any future infrastructure or planned development projects which will eventually increase rental value and property value if you were to sell.

Things to avoid, like I said, is to keep your heart in check and don’t let your own emotions get involved! Don’t buy a location that suits you or a property that is simply aesthetically appealing to your eye. In fact, take someone trusted with you to home opens who will keep you accountable to your investment goals before you commit, or point out things you might not have considered. Also, focus on the surrounds of the property – keep your eyes out for neighbours (good or bad, they have the potential to make a big difference to your tenant’s happiness!) and the general aesthetics of the street. Also, avoid suburbs with large existing rental pools as you’ll be competing with a lot of other landlords for the same group of renters, which can drop rental value.

Beyond your own research, should you be using a local property manager once you have chosen your desired investment location? Well, yes and no! It’s much easier for local property managers to attend home opens on your behalf and of course, they have knowledge of the area which is valuable. However, new technology and programs used by good property managers means we can easily service areas outside of our immediate suburbs.

Potential tenants rarely go to a property manager or real estate agent’s office to research their next abode, we know they’re more likely to visit websites such as realestate.com.au, reiwa.com.au and domain.com.au to scour their options. And once you have your investment and a good tenant, advanced property management software allows us to manage properties via an online portal anytime, from anywhere.

So, instead of a local property manager – focus on finding the right property manager! One with great references (ideally from someone you know), one you have a great rapport with because you’ll be dealing with them frequently and one who is equally driven to help you achieve your property portfolio dreams. There are some excellent property managers out there, and if I sound like the right match for you, contact me on 0402 888 550 to discuss your options.

I believe location stands as one of the most crucial considerations before buying a property and I can’t wait to help you find the perfect place for your investment.