We hear a lot about prime locations and, of course, location is always a key aspect when buying an investment property. But there is a vast difference between a prime location and a great location.
A prime location is often at the peak of everyone’s price range but hardly ever offers good value. It is a rare occasion when we find a property under value in a prime location — although we are always looking!
In most cases, prime location properties are overpriced, based on good investment criteria, even after allowing for intangibles such as prestige.
Great locations, however, are often undervalued, particularly those areas next to or near “prime” locations. There are often many examples of areas that benefit from similar demographics and demand as their neighbouring prime suburbs but do not have the prime “premium” added to the price tag. These “next best thing” locations frequently offer excellent value, as well as a fairer price tag.
However, there are also a growing number of areas that are totally independent of neighbouring prime locations and they are sought after and stand out as excellent purchases based on their own individual mix of demand, demographics and value.
A beach-side location, an area well serviced by transport options, suburbs with growing population demand, future development plans and rising social and economic factors frequently offer the best value and considerable upside despite their so-called secondary locations.
Until next week,