Regardless of whether you are purchasing a new property as an owner occupier or as an investor, it is critical that you get things right as this is one of the biggest investments you will ever make. And one of the biggest considerations to think about when making this kind of an investment is the location of a potential property.
However, note that what constitutes the right location varies from one investor to another. For example, an ideal location for some investors is based on lifestyle considerations, while for others, on things such as schools, amenities, work, and so forth. A number of investors also base their decisions on locations that are forecasting the highest capital growth or those where they can get a positive cash flow.
But whatever the decision, the one thing that remains a constant is the need to do a thorough research. Here are some things to consider when deciding what location is ideal for you. But before getting into these, what kind of a property are you looking for? How many bathrooms, bedrooms, etc? Do you want an apartment, semi or stand alone property? Are you looking for a renovated or a new property? How will you finance the purchase, through a cash payment or a mortgage?
Know your budget
Shop around for available properties for sale and explore your options so as to get the best deals out there. Most mortgage lenders have online mortgage loan calculators to help you workout the kind of budget that best works for you. With these calculators, you can even calculate a workable mortgage rate to suit your unique borrowing requirements. Having calculated the kind of a budget you can comfortably afford, go on and select the location. If you cannot find the kind of property for the budget you have in your preferred location, you have three options
• Change your budget, for example borrow more
• Change the location. As long as they meet your requirements, you can opt for suburbs on either sides of your ideal location.
• Change the kind of a property you are looking for. For example, if you wanted a three bedroom home, change it to a two bedroom property.
People will always advise to buy properties in certain neighborhoods and not the other. Nevertheless, it is always a great idea to look around these neighborhoods with fresh eyes. After all, it is you buying the property and not the other people. Not having any preconceptions sometimes work in a buyer’s favor. Prejudices will be forgotten over time and you will be grateful that you bought into the neighborhood while properties there were still inexpensive.
Investigate and research
When you are searching for a property to purchase, it is advisable to hang out where the local do. Go to the hotspots, cafes, local bars, anywhere the locals love spending time in and get talking to them. Ask them why they like living there. In this way, you will get a good idea of the sorts of a place your potential property is situated.
Speak to the experts
Prior to making any big decisions, it is always a great idea to speak to the experts. Property investors, private mortgage lenders, financial advisors and real estate agents will gladly share their specialist knowledge and experience with you.