The Importance of Location
by Grant Warnes, Senior Property Adviser
The three most frequently quoted words to do with property are either “location, location, location,” or “position, position, position.”
They mean the same thing, of course, and will always be regarded as the most important issue connected with property. Yet there could be many other fundamentals to take into consideration when choosing to purchase property. For instance:
- A highly sought after inner urban suburb
- An area in close proximity to various amenities and major infrastructure
- A position on a renowned avenue or boulevard
- A property on a prominent corner block
- A residence with water views
The list of descriptions I can attach to the word location could go on and on. So although it’s wise to always keep in mind that location is an important issue with regard to what will or will not be a great investment, as you can see it’s certainly not the whole story.
For example, when selecting medium-to-high density residential property in a development where there’s multiple ownership, it will be worth your while to consider the John Hopkins Property Selection Process six-point plan.
- The pedigree of the parties
- The purpose of the development
- The external design and function
- The internal design and function
- The standard fixtures and fittings and construction
- The ongoing management
The pedigree of the parties
The most important party is the developer, who must be an ‘A’ class individual or organisation that’s financially strong, professionally able, committed to their word, and with high ethical standards. That’s because having a proven track record with positive results is critical for both present and future projects. The architects and the builder are also crucial to the ultimate success of your investment. Having said that, it’s our experience that an ‘A’ class developer will always engage an ‘A’ class architect or builder.
The purpose of the development
What is the reason for the existence of this development? Is it going to be constructed to such a standard that owner occupiers will want to purchase it? Is it just to be sold on the investment market? Will it provide a high standard of amenities and management for all its occupants? Is it a development that has personality, and will earn a special, even desirable reputation over time?
The external design and function
The appeal of a beautifully designed property should never be underestimated. The use and variety of quality materials, the articulation and careful consideration of light and reflections, landscaping and much else are all essential if there is to be Continuing Strong Demand of both tenancy and sale.
The internal design and function
Every single property in a development is different. Each will offer different aspects, plans and often sizes. Therefore, it’s important that you take the time to carefully investigate the whole development right down to the minutiae of each
particular property, right down to the individual appeal and function of each.
The standard of fixtures and fittings and construction
Quality appliances, with special regard to their function, design and longevity are also crucial – as crucial as the standard of construction. All of us would love to invest in the perfect property, but unfortunately it doesn’t actually exist. And that’s why the John Hopkins Group places so much emphasis on working with developers who have that proven track record of delivering an exceptionally high standard of finish in all areas of development.
The ongoing management
This relates to the property’s body corporate, building management and tenancy management (property manager). These respective bodies all play an important role for the investor, landlord or owner occupier after settlement. However, the success of a development hinges on pre-planning in order that these functions can all work together successfully.
The purpose of this article was to briefly highlight some of the elements that the John Hopkins Group chooses to focus on when selecting property for two or more owners. Our observations and investigations will vary for an individually titled residential property, as they will for a commercial property. And remember, although location is important, there are always other fundamentals to consider.
For more information, or to arrange an appointment with a John Hopkins Property Adviser, please contact our Client Liaison Officer on 1300 726 082 or click here.