Thinking about investing in property? Whether it’s a home to live in or an investment property, before you take that step, it’s important to consider the location of your investment property and how this will affect the return on your investment.

In this episode of The Property Couch, Australia’s property experts Bryce Holdaway and Ben Kingsley discuss the importance of location when it comes to property investment for growing wealth.

When the “for sale” sign goes up, it’s four common factors that determine how much people are willing to pay: economic activity, human interest, human behaviour and location.

And while economic factors like ability to secure a high-paying job so you can afford property, human interest factors like ‘what things can I do around here’, and human behaviour factors like ‘what people will think of me living me’, all play a role 80 percent of the property price is driven by location and only 20 percent from the property.

Most people have an idea of the type of property they want to buy, but instead they could be looking at the location they want to live in and then purchasing the best property they can comfortably afford.

When it comes time to buy property, Ben and Bryce suggest considering the characteristics or features of a property you wish to invest in or buy in the following order: state, suburb (ideally within 10-12 kilometres of a capital city), street (position and performance), property (detailed analysis), due diligence (building inspection, title type), and negotiation.

According to Ben and Bryce: while houses, townhouses and units can all make good investments, it’s important you know which property type is right for the people living in that particular area.

See The Property Couch guide to why location crucial when investing in property: https://www.realestate.com.au/advice/why-location-is-crucial-when-it-comes-to-investing-in-property/

Read more of our budgeting tips and tricks: https://www.realestate.com.au/advice/finance/budgeting/

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This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.