We’ve long heard that “location, location, location” should be our key concern when making real estate decisions. However, property investment expert John Fitzgerald recently told Your Investment Property that land content and timing should both be prioritised over location.
“Location is important, but it shouldn’t be the thing that makes you choose where to buy,” he explained. “People get hung up on it and that’s how they end up letting their emotions get the better of them, and buying due to emotion isn’t a smart thing to do.”
According to Mr Fitzgerald, land content should be the most important concern for property investors, as he claims this is where the best returns come from. Land appreciates in value, unlike buildings which depreciate.
“If you buy an inner-city apartment for $1 million, then 90 percent of that value is for the building, but if you buy a house in the suburbs then 40 to 50 percent of the price is in the land,” he claimed.
Mr Fitzgerald suggests thinking about location only after land content and timing have been considered. He advocates looking for locations with high population growth, good job opportunities, and nearby facilities, including train stations and shops.
If you’re ready to become a property investor, speak to the financial experts at Chase Edwards. We’ll provide an honest assessment of your finances and help you find a property that ticks all the boxes. Call us on 1300 854 833 to learn more.