Where are the best locations for investment properties?

Where are the best locations? We get asked this quite a lot while talking to investors and owner/occupiers alike.

Our preference for investment location is as follows:

  • Within a 10km radius (ideally 5km) of either Sydney or Melbourne’s CBD
  • Suburbs with a village or cafe/shopping strip that attracts people both day and night
  • Good transport options
  • Areas desirable amongst both owner occupiers and tenants

We all know that these suburbs are expensive, but the reason we like them for investment is that people always want to live there because of the lifestyle. They are much less subject to market cycles than other suburbs/regions/cities and good property can grow in value even when prices are falling elsewhere in the same city.

Bottom line: they are far LESS RISKY than other locations.

When considering a location for investment, ask these questions:

  • Is the area cyclical?
  • Does capital growth rely on buying (and selling) at the right time?
  • Why would tenants want to live there? Just for work (risky) or because it’s a great place to live?

If you aim to buy at the bottom and sell at the top, you are speculating, not investing.


DOWNLOAD How to choose a low risk investment property ebook here

Further reading:

Buy property in Sydney – Can you still buy something close to the CBD for under $500,000?

Is your first home or investment property really your most important property purchase?

Location, Location, Location – how to choose a good suburb

Published:-  26 May 2016


Please note:

Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.


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