Is buying in a good area a great investment?

“Buy the worst house in the best street” is sensible advice for first home buyers. Being in a good area can positively affect the value of your house.

You could even improve the value of your property more, by doing it up to the same standard as others in your street. Before you go ahead though, have a good think about whether you’ll have the time, money or energy to renovate.

Keep up with the local news

Once you’ve decided on an area you like, keep up with what’s happening in the neighbourhood. See what things are selling for, if prices are on the rise, and whether homes are being snapped up quickly or taking a while to sell.

Go to open homes and auctions, walk around the streets to get a feel for the area, drop into local cafes, talk to real estate agents. Then, when you spot a place that ticks all of the boxes (or most – as a first home buyer, there are often compromises to be made!), you can make a confident offer.

Tips for finding a good area

  • Talk to family and friends about the areas they live in.
  • Ask a real estate agent or valuer about recent sales and price trends. 
  • Aim for an area with good facilities, such as transport, shops, schools and cafes.
  • In more established areas, look for locations where you can see places are being renovated and facilities are well cared for.
  • In newer suburbs, positive signs to look out for include a variety of home styles, with planting and landscaping.
  • Many people like sun, shelter, privacy, views and flat land. Areas that offer all this usually sell well.
  • Check the zoning of the area with your local authority, and find out whether there are any changes planned. If the area is zoned commercial you could find your home surrounded by businesses in the future.
  • Have a chat with one of our Mobile Mortgage Managers