Consider future developments, infrastructure plans for the location and take a long term investment view

Future developments and infrastructure plans for a suburb can enhance values, but they can also reduce them.

If there are a large number of apartment projects being sold off-the plan and due to be built or completed in the next few years where you are considering investing, this could severely impact on the value of your investment property.

As WBP Property Group chief executive Greville Pabst says, scarcity creates value. Equally, values could rise in a well-located development once other projects are completed and create the impression of a cohesive suburb, rather than just a collection of marked out residential lots.

Plans for new roads, train and bus stations, a new shopping mall and cafes can enhance the appeal of a suburb and push up values.

However, as can be seen with the release of plans for the East West Link in Melbourne, they can also potentially reduce values if they impact on the qualities that make a suburb desirable, such as being quiet or close to a park.

This article is fromProperty Observer's free ebook Top 10 Property Investment Tips