Location, location, location… These three words not only relate to the success of an investment property but according to Metropole Property Statistics, also heavily affect the capital growth of your investment also. To have a successful investment property, you must be close to amenity – cafes, transport, shops etc where your tenant has everything a stone’s throw away – and according to a recent study, this amenity will the the lead driver in the capital growth of your investment property.
According to Michael Yardney – the CEO of Metropole Property Strategists – 80% of the capital growth will be attributed to location and amenity, with only 20% attributed to the type of property that you buy. Yardney notes that transport is one of the key driving amenities in regards to value and is something which many investors do not prioritise when picking an investment property.
A recent report by Luit Consulting and Mecone Planning examined the effect that proximity to public transport had on property value. They found that property situated under 400m from public transport had a potential increase of 4.5% in value, property 400m-800m away could see an increase of 1.3% and properties 800m-1600m had the potential boost of 0.3% in value.
These figures show that a heavy emphasis on local amenity will not only determine the success of your investment from a tenancy perspective but it will also give you the capital growth over time that will truly cement the success of your asset.