Perhaps the most crucial aspect of buying an investment property is picking an area that's set for growth. Choosing the right location for your investment can be the make or break feature - a region or suburb that is due to see major development could push the value of your property up significantly. But how can one identify such an area? These are a few of the telltale signs that you might have picked a winner when it comes to property investment.
A person's place of employment is generally one of the top determinants of where they'll buy property. Buyers want a home that gives them easy access or a short commute to their place of work, which will not only save them money in transport costs but save them precious time, as well. If an area is seeing an influx of commercial property development, such as offices, industrial sites and factories, there's also a good chance that jobs will soon follow. When that happens, the area will become much more attractive to job-hungry buyers.
The better an area's infrastructure is, the more likely that people will want to live there. Highways, roads, public transportation, healthcare facilities - all of these and more are part of a robust infrastructure system, which in turn underpins the quality of life in an area. Have a look into whether the area you're considering has any developments and improvements to its infrastructure on the horizon. If so, there's a good chance buyers will flock to the region.
Entertainment and nightlife
This can be the easiest and most self-evident to spot if it's a case of first time property investment. Rather than investigating upcoming developments and reading market statistics, all it takes is going down to the area's main shopping district and seeing the atmosphere for yourself. A vibrant precinct full of restaurants, cafes, boutique stores and the like could have a positive effect on your property values. They tend to be harbingers of gentrification, when homeowners on the upper income scale move into a suburb, transforming it and its surrounding property values.