What kind of investor are you? Are you the type that looks for a dependable and long-term return, or one that is willing to take a wager on a good opportunity? If you’re the former, then real estate investment in blue chip properties is likely to be a good choice for you. Although these locations have a higher entry point, they’re also reassuringly stable over the long-term. Here’s what to look out for.
Location, location, location
Blue chip locations for real estate investments have always generally been within 10 or 15km of the CBD and belong to higher socioeconomic areas. The idea is that the area is already established with plenty of business, population and infrastructure as these will beget more of the same. One strategy for reliable returns is to look for in-demand areas where there is only a limited supply of properties or land available to be developed. As population and infrastructure grow around the location, so do demand and any subsequent rental returns.
Job and employment growth
One thing that sets a blue chip investment property apart is the fact that it’s more likely to weather any downturns. Look for areas with substantial and diverse job opportunities, or close proximity to these, as opposed to areas that could suffer with the closure of any one business or industry.
For once, it’s a good thing to follow the crowd when it comes to blue chip suburbs. Seek out areas of high population growth and for the ‘exclusive’ suburbs that people aspire to live in. Chances are, the appeal of these spots won’t diminish any time soon.
There’s also some evidence that as capital cities continue to rise in living costs there will be more movement out to major regional hubs such as areas in northern and southern NSW. Residential and commercial property investment in the more central of these locations could also be a wise move.
If you’re looking for as close to a sure thing as you can get in property investment property, then search for a mix of infrastructure. People will always want to live and work close to public transport option, good roads and dining and entertainment options. Areas around airports, hospitals and universities are also hotspots for growth.
If you have the equity to invest in blue chips locations, the money is on these areas to reliably outperform others over the next five and ten years. View our current portfolio auction listings and contact our property consultants to find your next blue chip property.