A colleague of mine recently related the story of his adult daughter who had just outlaid almost $5,000 for a handbag. Not just any handbag, mind you, this was an authentic Chanel (and it was definitely not bought at an Asian market).
As we discussed this, it became fairly apparent that the attraction of the handbag was the brand name. The bag did nothing more than the Kate Spade bag the girl had previously used – it held her phone, her wallet, her … well, honestly, what man ever knows what woman really keep in their handbag. The Kate Spade bag was certainly fashionable, but price wise it was a tenth of the cost of Chanel one. My colleague went as far as to say, from a visual perspective, they were similar; both black, both ‘squarish’ both with gold clips and finishing. Both of us would be quick to admit that we are not trendsetters in style and fashion. A brand name one person values isn’t necessarily valued by all and sundry.
Our conversation then turned to how this related to our business. We often have clients for whom the name of a suburb is as important as Chanel was to my colleague’s daughter. Do these investors necessarily get more for their money? No, in fact they often have to pay more for less.
When we discuss property investment strategy at Accrue Real Estate, we have all the facts and figures for every suburb. Ultimately, it is the client who makes the decision where to buy but often they choose to buy in a suburb in which they initially didn’t think they would buy.
Why is this?
Put simply, one suburb will have more value than another. This may be the rental yield the suburb is providing, it may be median property price or it may be capital growth of the suburb as a whole.
The key to property investment is not locking yourself into a ‘brand name’ suburb. Property investment needs to be undertaken when all the facts are on the table – suburb name is just one of them – and a small one at that!
At Accrue Real Estate, we know the Melbourne property market. We can help you find the right suburb to meet your property investment goals.
You can bring your Chanel handbag or your Kate Spade one, the facts and figures we provide will fit into either one.
The really important thing, though, is to use those facts and figures to make the investment choice that provides you the best chance of achieving the financial future you want.
Contact Accrue Real Estate for more information.