Investing: what is a good area?

When it comes to buying a property with the idea of getting capital growth, there are two major drivers important in the area where you want to invest in. The two things that need to be present for property to very likely to go up in value in the near future are:

1. Population Growth.

2. Infrastructure spending.

Of course there are more factors you want to look into (what has the area done in recent history, what has been the movement in surrounding area's, how do land prices compare with the surrounding area's, etc) but if these two boxes aren't ticked it's not looking good.

Anyone understands that an area becomes more desirable when there are more facilities nearby. So if schools are opening up in the area, shopping centres get built, town centres are being put in, public transport that gets improved, connecting roads that improve the accessibility of an area, you're likely to get rising land values.

People often mistake land being dearer closer to a city or hub as it being a better investment, while that is not necessarily the case. Au contraire: percentage wise a property on the fringes of the Perth Metro area is likely to get more growth in the near future then a property in an established suburb will. And this comes down to the two points I made earlier.

Articles like the below are interesting ones for property investors to take note of:

#investing #land