Location does the heavy lifting

Location will do 80 % of the heavy lifting for your property’s performance and that’s why I only invest in select suburbs of our three major capital cities.

Now I know there will always be people telling you to invest in regional Australia, but why fight Gorillas - why fight the big trends?

Most jobs, most wages growth, most population growth and most of our economy happens in Australia’s capital cities and in particular in our big 3 capital cities.


The inner and middle-ring suburbs will always outperform with regard to capital growth and have done so over the last 40 years.

Interestingly it wasn’t always this way – at federation regional land was as valuable as capital city property, then we became an industrialised country and people moved to the city.

Now we no longer manufacture goods – it’s all about services – that’s where the higher-paying jobs are and these people have more disposable income.

By the way…I’ve always recommended investing in locations where people have higher disposable incomes and are able to and prepared to pay a premium to live there.

These tend to be the more established suburbs in our big capital cities, and the surrounding gentrifying suburbs.

I can hear some people thinking "Isn’t all the good land taken – isn’t it unaffordable to invest in the 3 big capital cities?”

The fact is, the way people are living is different today…


We’re trading space for a place – trading backyards for balconies and courtyards to live in the inner and middle-ring suburbs of our big capital cities, which means you don’t have to own a house. Townhouses, villa units, and low-rise "family-friendly" established apartments in the right location make great investments.

I know there are people out there coming to invest in the new outer suburbs, but I’m not really convinced that land in Penrith or Point Cook, or Toowoomba will ever be more valuable than land near the harbour.

Think about it - where would you live if money was no object?

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Jason Gwerder
Saturday, 20 May 2023

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