If you’re thinking of taking another step up on the property ladder and seeking out the best investment suburbs in Queensland, you’ll of course be looking for property that’s set to increase in value over time. To choose the best vacant land or residential property, it’s important to understand exactly which factors can influence a property’s market price. Here are some of the most important.
There’s a reason they say ‘location, location, location’! The positioning of a property – and its proximity to important features – naturally has a direct influence on how that property’s value will change over time.
- Proximity to local amenities such as shops, quality schools, city centres and career opportunities.
- Proximity to lifestyle features such as beautiful beaches, parkland, fishing spots and rainforests.
- The immediate neighbourhood and its aesthetics and reputation. For example, a residential property in a friendly and well-kept neighbourhood will likely maintain its value better than in an area with lots of run-down properties or local crime.
The population and demographics of a local area can certainly have an impact on property prices. If there’s positive population growth in the area, demand for housing will be stronger. That’s good news whether you’re investing in your own home to live in long term, or renting out an investment property to tenants. It’s also worth considering the career opportunities in the area, and choosing an area that isn’t dependent on just one industry. Significant local infrastructure investments, such as a new railway line or a waterfront development, can also help to influence future growth.
Interest rates and economic factors
Of course, the wider economic environment also influences property values over time in a significant way. Lower interest rates and government incentives tend to encourage economic activity and property purchases, while higher interest rates can drive general spending down and property prices to swing to the lower end of the cycle over time. Right now, record low interest rates are a great incentive for people looking to invest!
The age, quality and condition of the home
The quality, condition and age of a home on a residential property can also affect its market value. A beautiful newly built home today could not only attract a better-paying tenant if you’re renting it out, but could also lead to a higher resale value if you choose to sell in a few years’ time than a home that’s already decades old.
Ultimately the question of “how much does land value increase per year?” will very much depend on where, when and how you choose to invest. If you are looking for the right property in Queensland, consider real estate in Mackay where population growth is robust and there’s significant investment underway in local infrastructure. Plantation Palms in Rural View is ideally located close to beaches, schools, jobs and weekend adventures. Drop into or contact our land display centre today, and explore the potential for your own Mackay investments.