• Six features to look for in a good investment suburb

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    Author: Bankwest (sponsored content)

    Have you ever wondered why house prices in some suburbs outperform others? Part of this is due to a suburb’s amenity or the lifestyle features that are on offer to local residents.

    Reviewing a suburb profile in detail can be very helpful to identify the pros and cons of a potential area. For example, better amenity can drive buyer and renter demand higher, as more people are attracted to live in areas that provide greater lifestyle offerings, which subsequently helps increase property values.

    Here are six features that can help you select the best suburb to invest in.

    1. Café/retail precincts

    Suburbs with a good café or retail strip can be in higher demand as people typically want to live close to precincts where they can meet family and friends to shop, eat and socialise. This can also be the case for suburbs with, or nearby, large shopping centres that offer dining options, cinemas, supermarkets and retail outlets.

    2. Access to public transport links

    As the populations of our capital cities increase over time, so too does congestion. This can lead to more people wanting to live in suburbs with good transport links, such as train stations, bus exchanges and well-connected roads, which allow residents to commute more efficiently.

    3. Public open-spaces

    Compared to a generation ago, land sizes for metropolitan properties are shrinking leading to smaller backyards. Therefore, being close to public open-spaces, such as parks, beaches and rivers, can be highly desirable as these areas provide locals a place to meet others, exercise and walk their pets.

    4. Schools

    Because families need to live in certain catchment zones to be eligible to send their children to specific public schools, demand can be higher for properties that fall within the areas of the higher-ranked public schools. Demand can also be higher for suburbs nearby good private schools as some families want to live closer to their children’s place of education due to convenience.

    5. Close to major employment hubs

    Given that many people have to commute to their place of work on a regular basis, suburbs closer to major employment hubs can be in higher demand. This can include areas nearby capital city CBDs as well as second-tier employment hubs in metropolitan areas.

    6. Rezoning opportunities

    Typically residential properties will be classified with a particular zone, which dictates the type of dwellings that can be built on that piece of land as well as the density, or number of dwellings. The zoning is determined by government, typically local councils.

    When properties are rezoned for higher density, it can increase their value as they have more development potential. For example, if a property’s zoning is changed from a single dwelling to a duplex or triplex.

    Buying a property before it is rezoned can be risky as there is no certainty that the zoning will change.

    While these lifestyle offerings can help drive buyer and renter demand higher, these are just some of the features that help make a good investment suburb.

    It’s also important to consider the supply-side drivers of the property market as this will also influence how well properties perform in one suburb compared to another.

    If you’re considering investing, you can also learn the basics of property investment.

    Disclaimer: Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit licence 234945