According to analysis reported in Property Update earlier this year, most investors stay close to the nest and buy within a 50km radius of their home.
Fewer than one in three purchase more than 200km away from where they live.
Check out the stats:
- 9% of investors purchase within the same suburb they live in
- 1% purchase within 50kms of where they live
- 8% of investors buy within 2kms
- 5% of investors purchase more than 200kms away
What does this say about where the smart money is?
Well, of the 2.2 million Aussies who own an investment property, more than 70 per cent own just one. Some say if you get stuck at your first investment property you might have chosen the wrong one. But for others, one investment property may have always been the game plan.
In either case, getting the location of your investment property right is critical if you want to maximise your financial returns over the long term.
When selecting an investment, what are the chances that the property with the highest return is in the same street or suburb as your own home? If you consider the whole of Australia as a potential site for investment, then the chances are pretty slim.
It’s also unlikely to be your own home – but that doesn’t stop homeowners turning their former home into a rental property when they trade up.
Ultimately, the best option will come down to your individual circumstances, so make sure you do your research, talk to different agents to understand different markets, and get independent financial advice before you dive into a big financial commitment.