Let’s cut to the chase—when you're eyeing real estate, everyone bangs on about location. That old chestnut "location, location, location" isn't just hot air. It's crucial because it heavily influences a property’s allure and its potential for value appreciation. But here's the rub: should you pour your cash into a well-trodden, prime location, or venture into the less charted territories of outlier areas? Each option packs its pros and cons, shaped by your personal needs, investment ambitions, and how you want to live your life.

The Allure of Prime Locations

Prime spots are usually the heart of the city, bustling and brimming with life, thanks to their top-tier reputations, convenience, and often, a dash of history.

They’re the go-to for many and here’s why:

Benefits of Buying in Prime Locations

1. Higher Resale Value: These properties don't just sit pretty; they appreciate fast and tend to hold their value, making them reliable investments.

2. Amenities and Accessibility: Living central means everything’s within reach—shorter commutes, and a hop away from shops, eateries, schools, and transport.

3. Kerb Appeal and Prestige: A prime postcode can do wonders for your social and professional clout—it’s not just a home; it’s a status symbol.

Drawbacks of Prime Locations

1. Cost: Big drawback. Sky-high demand means sky-high prices, which might cramp your style when it comes to space and features.

2. Space Limitations: Often, you’re paying more for less space. Prime city living often means compromising on the size of your pad.

3. Competition: Everyone wants a piece of prime real estate, leading to bidding wars and less wiggle room to negotiate, which can be a real headache.

I absolutely love this quote

(You can make your own mind up on Buffett himself!)

The Potential of Outlier Areas

These less-known gems are tucked away on the city’s edges or in quieter regions. They might lack the immediate brand recognition of their prime counterparts, but they’re not without their charms.

Benefits of Buying in Lesser-Known Locations

1. Affordability: Your money goes further here, letting you snag larger properties or more land for less dough.

2. Growth Potential: There’s a chance for a good return on investment as these areas develop and gain popularity, if you can wait!

3. Customisation and Privacy: More space means more room to play with—expand, build, and make the place truly yours without the usual constraints.

“Hope” for building or the same old story?

(I fear the latter)

Drawbacks of Lesser-Known Locations

1. Longer Commutes and Less Accessibility: The trade-off for peace and space is often a longer trek to the city’s hustle and bustle.

2. Slower Appreciation: Properties here can be slow burners in terms of value increase, requiring patience and a long-term perspective.

3. Lack of Immediate Prestige: These areas don’t carry the same weight in name-dropping conversations, which might be a minus for some.

 Personal Preferences and Investment Goals

Deciding between a prime location and an outlier comes down to what’s non-negotiable for you—be it the vibrancy of city life or the tranquillity and potential of a quieter locale. It’s all about what suits your lifestyle, investment goals, and personal circumstances.

Investing in real estate isn’t a one-size-fits-all scenario. Whether it’s the dynamic allure of a central hub or the spacious potential of a fringe area, each option has its unique set of perks and challenges. Think about what you value in the long run—convenience, growth, lifestyle—and let that guide your decision.

Key Takeaways:

1. Balance your need for immediate convenience against your financial aspirations when picking a spot.

2. Your daily life—commutes, space requirements—should heavily influence where you choose to settle.

3. Keep an eye on up-and-coming areas; they could be the next big thing in property appreciation.

This week I wanted to include my colleague & all round design genius Garry Cohn of COHN, Architecture & Interior Design. Below is a taste of a video on designing your kitchen but I’m also including his website so you can drool, I mean check out his other work.

P.S. As a subscriber if you have friends or family who are feeling lost in their property journey they can book a 30 minute session with me to help them get clear (no sales pitch, just guidance & an impartial ear).

They can book it here.

RANDOM REAL ESTATE TRIVIA

Imagine a space where the lines between indoors and outdoors blur, where living is like perching in a tree. Tokyo's House NA brings this vision to life, a glass-wrapped abode offering a novel perspective on urban dwelling, all courtesy of the innovative minds at Sou Fujimoto Architects. This home is an exploration of openness, challenging traditional concepts of privacy and inviting the outside world in.

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Andrew

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