Property investing's X-factors can be game changers
Everyone knows the phrase location, location, location when it comes to real estate investment but there are some other variables that can prove to be real X-factors in achieving investment success.
One of the most important numbers property investors need to consider when deciding where to buy, actually has nothing to do with the property market – it's the unemployment figures.
Jobs are important to the overall health of our economy; people need a job to get an income and an income to live. They also play a vital role in demand for land and housing.
The unemployment rate in Australia is lower now than it has been since 1976. Obviously, the figures will change slightly depending on which state you are looking at, but on a whole unemployment is extremely low throughout Australia.
The latest Australian Bureau of Statistics figures released this week (15 September) show the seasonally adjusted unemployment rate rose very slightly to 3.5 per cent in August.
Areas with high population growth, generally have high demand for housing, most people won’t live in an area if they can’t find a job nearby.
The top five industries for employment in Australia are health care and social assistance, retail trade, professional, scientific and technical sciences, construction, and education and training.
Not only are they among the biggest employers but industries such as healthcare, professional services and education are also the fastest growing.
That means they provide plenty of jobs, so when it comes to selecting an area to invest in property it’s a clever idea to see whether it is close to these types of services.
Schools a smart choice
Healthcare is another real X-factor for the property market.
States, territories and suburbs that invest heavily in healthcare will outperform others when it comes to population growth and demand from housing.
Jobs in the healthcare industry are generally built around hospitals and aged care facilities, so it’s worthwhile looking at investment opportunities around suburbs that are within easy travelling distances of them.
Professional services jobs generally require proximity to central business districts, or business parks. Ample public administration and financial services jobs can also be found there, too while education and training jobs generally require proximity to schools, universities and TAFEs.
Therefore, it’s a safe bet to invest in areas that are close to these categories of community infrastructure.
Other amenities that make suburbs a good place to invest include shopping centres, neighbourhood centres and high streets.
