Location, location, location: why up to two-thirds of property investors may be getting it wrong

PHOTO: What matters most to buyers, along with price and value, is location. ABC News: Liz Pickering

The housing market is moving again. In the past month, national prices have climbed 0.9 per cent.

What matters most to buyers (and especially to investors), along with price and value, is location.

The cliché suggests that in the long run that’s all that matters.

So it would be unfortunate if investors were getting it wrong.

Our examination of proprietary data from a major bank covering 1.15 million residential mortgage applications over the six years between 2003 and 2009 suggests they might be.

Published this month in the Pacific-Basin Finance Journal under the title Home advantage: the preference for local residential real estate investment, it finds that more than two in every three Australians buying an investment property pick one close to where they live.

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