It’s all about location, location, location, right?
...But before you get to the location, you may want to start on a larger scale.
When people think of property research, they often think of neighbourhoods.
...And why not?
It’s exciting to check out the neighbourhood.
You may have personal preferences of what suburbs you like and where you’d like to go on a holiday.
Unfortunately, none of those factors really tell you if an investment is suitable, though.
Instead, you want to look at macroeconomic drivers like the state and the region’s performance.
It may not sound as exciting as a sightseeing trip to the nice suburbs.
But these macroeconomic drivers affect the microeconomic investment drivers.
And both of those affect the individual property you may be considering.
So first, let’s define “infrastructure.” These are essential services like:
- Transportation – roads, airports, rail
- Social facilities – hospitals, schools, community buildings
- Utilities – gas, electricity, water, communications
This factor can drive employment, economic growth, and productivity.
Generally, new infrastructure projects can help boost the local economy.
It creates new jobs, thus attracting more people to the area.
In addition, new projects can also provide indirect benefits as well.
This can include consumer spending and the social aspects of community development.
Investors may want to pay special attention to road upgrades and developments.
These project types make the area more accessible and drive up value.
Furthermore, there are also other factors to consider when looking at infrastructure like:
- Property clock – is the growth for the region declining or rising?
- Unemployment rate – is it above or below the national average?
- Gross Regional Product – how is the area’s economic production?
Keep in mind that you shouldn’t look at this data as individual indicators.
Each piece is important to the comprehensive profile of the area.
Once you get a good idea of the overall macro drivers for a particular region, you can start looking closer.
But until then, looking at the infrastructure may give you a good idea of where to start.
If you need help looking for the right property, we can help with that and more.
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