What defines an excellent investment property? It’s a frequently asked question, and for good reason. Though it seems straightforward, the answer is multifaceted and must consider numerous factors.
While not an exhaustive list, here are the key aspects to focus on when looking for, evaluating, and buying an investment property.
Proximity to public transportation is a significant factor. Whether commuting to work, attending entertainment events, or traveling to school, being near trains, trams, and buses is always desirable.
Public open space is a highly sought-after feature. Victorian license plates carried the ‘Garden State’ slogan for many years for a reason. We love our open spaces, be they parks, ovals, beaches, or rivers. This appreciation was emphasized and heightened during the pandemic lockdowns.
Access to high-quality education facilities is another major driver, covering both primary and secondary, as well as private and public school options.
Having a nearby village that fosters a sense of local community is in high demand. This trend has notably grown in recent years, with shopping districts that declined in the 1980s and 1990s now being revitalized by the emerging café culture in various neighborhoods. Noteworthy examples include Rathdowne Village in North Carlton, Burke Road in Camberwell, and Ormond Road in Elwood. Noteworthy illustrations include Rathdowne Village in North Carlton, Burke Road in Camberwell, and Ormond Road in Elwood.
Specific attractions within suburbs also wield significant influence. For example, in Bayside neighbourhoods, the appeal of the beach attracts many buyers, while in inner northern suburbs like Fitzroy and Collingwood, the vibrant pub culture is very popular.
Employment opportunities also play a role. Infrastructure that provides numerous jobs, such as hospitals, is an attractive proposition and generates strong demand from a tenancy perspective.
Gentrification involves the urban renewal and revitalization of neglected or deteriorating neighbourhoods through an influx of wealthier residents, rising property values, and often, a transformation of the area’s ambiance.
Gentrification is advantageous for property investment because it generates economic benefits and enhances the area, thereby increasing demand and consequently raising property prices.
Whether you’re seeking your first home or an investment property, examining the crime rate in the neighbourhood is crucial.
Areas with low crime rates are much more appealing than those with higher crime rates. People are willing to pay a premium to live in a suburb where they feel safe, and this increased demand helps sustain property prices.
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