When it comes to buying property in Australia, whether you are a purchasing a home or an investment, one golden rule stands out: location. While features like a modern kitchen or spacious living areas are appealing, these can be upgraded over time. What can’t be changed is where your property sits. The right location not only enhances your lifestyle or that of your tenants – it also plays a pivotal role in long term capital growth, rental demand and future resale value.
In this blog, we will explore why location matters in real estate, what to look for when assessing a suburb or street and how making a smart decision today can set you up for success tomorrow.
Why Is Location So Important When Buying a Property?
Think of location as the foundation of a strong investment. You can renovate a house, however you can’t change its postcode. In a high demand area, even modest homes tend to attract strong buyer and tenant interest, whereas a beautifully finished home in a less desirable suburb may struggle to achieve the same outcomes.
Here are four key reasons why location is crucial when buying a home or investment property:
- Capital Growth: Properties in prime locations tend to appreciate faster and more consistently.
- Rental Returns: Tenants are willing to pay more for convenience, lifestyle and accessibility.
- Market Resilience: In downturns, properties in sought after areas generally hold their value better.
- Ease of Selling: Homes in great locations attract more buyers and sell faster.
If you are wondering how to choose a location when buying property, it comes down to understanding the elements that make an area desirable over the long term.
Top Location Factors to Consider
To maximise your returns and minimise your risk, it’s essential to assess not just the suburb, but the street and micro location of the property. Here’s what to prioritise:
1. High Owner Occupier Percentage
Suburbs with a strong owner occupier demographic tend to perform better over time. Owner occupiers usually take more pride in their homes and surroundings, contributing to neighbourhood stability and appeal. Additionally, areas with fewer investor owned properties often experience less turnover, reduced vacancy rates and improved long term growth.
Tip: Look for suburbs with high owner occupier demand, typically those with over 65% of residents owning their homes.
2. Proximity to Key Amenities
Convenience is key for both buyers and renters. Access to transport, schools, parks, shops, cafes and medical facilities can dramatically improve the appeal of a property. Suburbs with established infrastructure or plans for future development usually signal sustained demand and capital growth potential.
If you are researching the best suburbs with good amenities, also look into council development plans, zoning and infrastructure upgrades.
3. Street Appeal and Environment
Not all streets within a suburb are created equal. A quiet, tree-lined street or cul-de-sac is far more attractive than a home facing a busy main road or industrial zone. This applies to both owner occupiers and tenants, who seek peace, safety and a sense of community.
If you are not sure how to choose the best street when buying a house, avoid:
- Main roads with traffic noise
- Streets with high vacancy or neglected homes
- Areas prone to flooding or industrial surroundings
Look for:
- Greenery and established gardens
- Well maintained neighbouring homes
- Low traffic and community feel
Rental Appeal and Tenant Retention
For investors, location can significantly impact rental income and tenant turnover. A well located property attracts quality tenants and encourages them to stay longer, reducing vacancy rates and saving you thousands in reletting costs.
Tenants typically prioritise:
- Easy commutes to employment hubs
- Access to lifestyle amenities
- Safety and walkability
- School zones and public transport
Knowing what tenants look for in a rental property can help you choose a location that will deliver strong rental returns and stability.
5. School Zones and Education Options
A location within a coveted school zone can significantly increase property demand and value. Families are often willing to pay a premium to be zoned for a top performing school, making these areas highly competitive.
If you are evaluating the best school zones for property investment, also consider local enrolment caps, catchment changes and school performance trends.
Long-Term Value: Why Location Impacts Resale and Rental Success
When it comes time to sell or lease your property, your location will largely dictate how easy and profitable the process will be. Well located properties attract a larger buyer and renter pool, resulting in better outcomes across the board.
Here’s how location supports long term performance:
- Higher buyer competition = better sale price
- Lower vacancy rates = consistent rental income
- Stronger capital growth = higher equity over time
If you have ever asked yourself, “does location affect property value?” – the answer is a resounding yes.
When it comes to property investment tips in Australia, few are more important than understanding location. Whether you are buying to occupy or for investment, prioritising location ensures your asset performs well over time. From owner occupier demand to amenities, street appeal and school zoning, every element contributes to your property’s long term success.
By Lynda McNeill
