"Do you have anything in Sydney?" (for a Sydney resident)

)Why Sydney? It's our most expensive city and out of reach for many investment buyers anyway, particularly if they already have a home in there. Other capital cities currently have better short-term growth predictions with a much lower entry point. I’m not ruling out Sydney, but I’d suggest being open-minded about other areas. Don't let your preference of where you enjoy living limit your choices.

I often hear it's better to own an investment property near where you live because it's easier to drive past and check on it. This behaviour is either feeding an ego that needs bragging rights or it's nurturing fear the property might magically disappear through a wormhole (as happens in 'The Flash' movies I watch with my Son). Regardless of the reason, it’s not usually based on sound investment research.

There are plausible reasons to purchase nearby e.g. if you intend to personally renovate and sell quickly (ie. flip) as travel time can reduce costs. Even then, be careful to choose design schemes what will appeal generally to your market and not adopt what appeals to you.

Most of our lifelong bulk savings are in a managed Superannuation fund. It’s more than likely a reasonable portion of your Super will be invested in safe ‘Blue Chip’ shares e.g. Wesfarmers. Are you concerned where Wesfarmers' head office is located? What about the office décor and the wall colour in the tea rooms? I'm sure you'd be more concerned about the ‘return’ on your Super and not the physical appeal of each asset held in the fund. Why should an investment property be any different?

If you have done the research and are attracted to the predicted investment returns near your home location, then go for it. But if your starting out, keep an open mind on other areas as it can be a good strategy to diversify.

“I want a north-facing property.”

Do you think renters care if a property faces north? A lot of Aussies would prefer a south facing aspect. They may prefer the winter sun warming the backyard patio where they could enjoy a beer and a snag on the 'barbie'.

Others might prefer the sun along the side of the house illuminating and warming more of the living space.

Over the long term, do property values on one side of the street appreciate in value substantially more than the other side due to the sun aspect? Do they attract more rent? Nope.

You may like a property facing north (or south) for your home but don't assume your investment property renters or eventual buyer will feel the same.

Note. An exception of this is that, for religious reasons, some people require all properties they own to face a specific direction, irrespective of whether they are investment properties.

“The kitchen must have marble or granite benchtops.”

If you were to poll renters, you’d probably find they favour a functional kitchen rather than specific surfaces. In 15 years or more when you may want to sell (and make a killing), so you'd probably repaint, replace carpets and perhaps upgrade the kitchen to a more modern design anyway.

I understand engineered stone benchtops are all the rage. What will it be next year? Renters won't care. You'll be fine to just go with basic kitchen benchtops for now.

“It needs to be on a block at least 500sqm.”

Renters are busy people these days and not generally interested in spending their weekends mowing grass or labouring over garden maintenance. Rather than upkeeping pitch-length areas for backyard cricket, many would prefer their kids playing in safe common neighbourhood areas with friends. Future buyers will feel the same.

More land does not necessarily mean a more popular property. It will mean more cost for no additional rent.

Typically, the average capital growth as a percentage of the purchase price is not going to be more for larger blocks versus one that is say 350sqm in the same location. It just means the bigger blocks will be more expensive to begin with.

If there is a reasonable number of lower priced properties on smaller blocks in the area, they can create negative price pressure on the larger ones. It’s sometimes best to just go with the average land size for your chosen location.

When it comes to investing in property, size doesn't always count.

“It must be walking distance to a train station.”

Ok, this is controversial. I hear you. "What! How could you say a house within walking distance to a train station is not a good investment decision?". I'm not saying that. There are obvious benefits supporting proximity to transport which adds to the desirability of a property and warranting it as a good investment choice. My point is, this criteria is not mandatory and will limit your choices. You will also pay a higher price.

Suburban properties in our eastern seaboard capitals have enjoyed a healthy growth over the last 10 years irrespective of whether tenants can easily leg-it to the nearest train depot.

Good luck getting to a train station if you live in Sydney’s prestigious Northern Beaches. Even the sought after location, French’s Forest is a good 25 minute drive to the nearest station.
Renters and future buyers of your property will be looking for affordability and it’s unlikely to be next door to Sydney Rail stops.

I live within 2 km of a train line and the screeching brakes of the passing coal trains from Lithgow keep me awake. Train station neighbourhoods suffering from train noise, parking congestion and security issues are not attractive to everyone.
People won't mind a 15 to 20 minute drive to a station. Within our capital cities and major regional towns, the buses are generally a good fill in anyway. Don't limit your choices based on your personal biases.