You may already have a few suburbs in mind, so how do you pick the right one? Here are 5 tips that are sure to help.
1 - What are the current rents in the area? Check online through domain.com.au or realestate.com.au and see what a typical 3 or 4 bedroom home rents for. When you factor in the cost to buy or build will you receive a good rental return on your investment. Also keep an eye on the supply, if there are pages of rentals available in one particular area it may be a case that there is too much supply for the demand.
2 - Infrastructure. What is available in the area - schools, shopping centres, transport, entertainment - either established or soon to be developed. All of these features attract tenants.
3 - Link Roads, Expressways. Are the suburbs you are looking at close to major roads that potential tenants could use to drive to work. In the Hunter and Newcastle area, popular roads such as the Link Road and soon to be completed Hunter Expressway, are great roads to access for employment.
4 - Take a closer look at the suburb, what are the houses like? Are they well maintained? Do you see majority houses or units? If you can, take some time to walk through the local shops and see who is living in the area. Google street view could also assist in viewing the area. Residents who take pride in their homes and community create a positive environment which will attract quality tenants.
5 - Remember, you do not have to invest in your own suburb. Great investments are available state and countrywide.
Do you have other selection criteria when you are deciding on an investment location?