Is where you live a good investment?

We all know a little bit when it comes to property, after all we all have a home, street or neighbourhood where we consider ourselves to know just a little more than others or perhaps even be an expert. There is the constant just sold brochure through the mail, the onsite auction we have a sticky beak at and the occasional door knock or cold call to inform, "did you know number 23 just sold for'…” So if we are considering to invest, wouldn't the area we live in be a great place to start.

The answer is it depends - will your area perform better, the same or worse than the general Real Estate market in your town or city?

For the answer - we have to go up – 20,000 metres up - to take a helicopter view of it all.

1. Let's look at jobs - does the area you live in have an abundance of jobs in more than one industry. If the answer is no - then it's not a good place to buy. Employment is the number one criteria when people are choosing a place to live so they don't have to drive more than 30mins to work.

2. Let's look at owner occupiers - The more discretionary property, the more volatile the prices. If the area has too many investors or holiday homes to the point they out number residents, be prepared for a bumpy and volatile investment journey.

3. Let's look at supply - if there are a lot of buildings and apartments being constructed, your supply is increasing rapidly and demand maybe won't keep up - we want tightly held areas to invest in. Don't be caught out with all that hot spot talk.

4. Let's look at demand - are more people moving there or moving away. We need a strong market depth and some countries, cities and towns cannot keep its residents and therefore your property will perform accordingly.

If you answered yes to all four questions - chances are it's a great spot to invest in, as long as you answered objectively and without bias.

You see many people invest but a vast majority are not successful, they pay too much, they sell too soon or it just all becomes too hard. So look at investing where will be secure and less volatile, make sure you have finances to take account for a change in circumstances and a team to keep you honest and on track for your goals.