Looking at how property values are performing in Australia, one would think that buying just about any property guarantees a future goldmine.

A good investment naturally means good returns, and the best way to achieve good rental returns is by investing in property located in areas experiencing rising demand.

To determine what factors are likely to influence demand in a particular location, consider these:

Lifestyle factors

One great way to identify a coveted location is by looking at the lifestyle factor or, simply put, what attracts people to the area, proximity to cafes, restaurants, schools and shopping centres.

If you find a property at a good price with these amenities, you could be on to an investment winner.

Trains, buses and light rails

Accessibility is a big factor for many renters, so a property that’s within walking distance to a train or bus stop is sure to do well for the astute investor.

For maximum return, it pays to do some research and find areas that are yet to develop a transportation link. Once these facilities are built, you might find your investment skyrocket in price – great news for your property portfolio.

Give me land, lots of land

Houses and apartments are great investment options, but another consideration is rural property. If you find yourself a few acres of low-maintenance land, the possibilities are endless.

And as housing developments grow and populations increase, your ample investment could be your key to a nice profit many years later.

Go commercial

Another investment strategy, particularly if you’re looking to diversify your property portfolio, is to invest in a commercial residence or business premises.

If you target the right audience and location (such as a main road with good street visibility and parking), you may find that you can easily lease your premises – and with high demand.

That has to be good for your rental dollar!

Take your time and research your options to ensure your next investment is a smart one.

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This article does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.