Location, Location!

Arguably the most important factor to consider in choosing the right investment property is the location.

Perhaps this is because the location of a property is the one factor that impacts the value of a property the most, yet you have little or no power to change the perception, reputation nor the amenities in the neighbourhood around your investment property.

I have come across many people who lament “but my house is so much better than that property that sold for X amount, how can the estate agent then tell me my house is worth less than that…”

No matter what you do to improve your property, if its in a less than desirable location all you can hope to get is still the best price possible IN THAT LOCATION.

In choosing the right investment property it is important to avoid sentimental decisions, remember folks, you’re not buying a house to live in. It is an investment so do your research and keep your eyes on the numbers, this is about profit margins and cash flow at the end of the day, not a feel-good exercise.

Closing thoughts...

It might be more profitable to purchase a basement studio apartment in the right location than a five bed detached mansion in some other location, its all about the numbers guys!