Petrol prices and property

Property prices in suburbs located on the fringe of capital cities are decreasing much faster than those suburbs closer to the CBD’s or public transport. Due to rising petrol prices the cost of getting from these isolated suburbs to work is now eating away at these household budgets.

Petrol prices are now at a level which is impacting on a families everyday budget, especially those families who do not live in close proximity to their place of work. A solution might be to catch public transport. But often due to limited (or perhaps misused) state resources the availability of public transport decreases the further you move away from the CBD making it harder for these people to opt to public transport.

This is affecting property prices in these suburbs where prices are falling a lot quicker than other suburbs. Home owners no longer want to live in a place which is too far from their place of work or is not in proximity to public transport.

So next time you are looking to purchase a home or investment property take careful consideration about where the property is located in regard to transport and the CBD. This doesn’t mean you need to purchase a property in the CBD but look for properties which are located near where people work, this could be an industrial area, or a large metro area within a major city.