The more you know about the most common mistakes that investors make, the better your likelihood of building lasting wealth.
In this series of short 5 minute videos, I discuss the common mistakes I’ve seen investors make.
Today we discuss the importance of location.
It’s often said that the secret to property is “Location, Location, Location.” But is that true?
And with so many locations to consider, where does an investor start?
Watch as Michael explains:
• Location will do 80 % of the heavy lifting for your property’s performance
• There will always be people telling you to invest in regional Australia but why fight the big trend. Most jobs, most wages growth, most population growth and most of our economy happens in the capital cities and in particular in our big 3 capital cities
• Then inner and middle ring suburbs will always outperform and have done so over the last 20 years
• It wasn’t always this way - At federation regional land was as valuable as capital city property, then we became an industrialised country and people moved to the city. Now we no longer manufacture goods – it’s all about services – that’s where the jobs are and these people have more disposable income
• Isn’t all the good land taken – isn’t it unaffordable? No - Invest where people have higher disposable incomes and are able to and prepared to pay a premium to live there
• We’re trading space for place – trading back yards for balconies and courtyards to live in the inner and middle ring suburbs of our big capital cities
• I’m not convinced that land in Paramatta will ever be more valuable than land near the harbour
• Where would you live if money was no object?
With thanks to Michael Yardney's PropertyUpdate.com.au