Buying an investment with good access to public transport has always been considered a good strategy.
But what many people in Perth don’t realise is just how important it actually is.
As Perth’s massive population growth brings with it increased road traffic and longer commutes, properties near public transport links will become more and more popular.
You just have to look to the bigger cities in Australia and around the world to understand the value people place on having good access to public transport.
Many people in Perth don’t yet fully appreciate this fact, which creates opportunities for forward-thinking investors.
By some estimates, there will be 250,000 more cars on the road in just five years’ time.
And as the roads get busier, some parts of Perth, such as the CBD, will become harder to access by car.
At the same time, suburbs with good public transport will become more desirable and lead to higher rates of growth in terms of property values and rent.
In fact, research has shown conclusively that suburbs with good public transport, on average, have higher capital growth rates than poorly-serviced suburbs.
It’s not difficult to see why people value living near good public transport links
There is the time factor – people don’t want to spend hours in traffic going to and from work.
However, it’s not just about traffic congestion.
The rising cost of petrol and parking is also a major factor in encouraging the use of public transport.
There is also the general increase in environmental consciousness amongst the population, which is driving people to use their cars less.
In the world of public transport, rail is generally considered king.
Properties within walking distance or a short drive from a train station will increasingly be high on the list for buyers and renters.
Major bus routes will also be considered important.
There is another major bonus of investing near public transport nodes. It’s the fact that as local councils push to increase housing density in line with state targets, rezoning efforts will focus on areas with good access to public transport.
We’ve already seen this happen and it will continue.
It’s worth noting of course that investors need to keep their wits about them when searching for a property near public transport.
A property can sometimes be ‘too close’ to public transport when it brings excessive noise, pollution, traffic and safety concerns.