We all love our own neighbourhoods, right?
Their thinking is: Well, I love this suburb so everyone else will as well! But this isn’t necessarily true and here are some reasons why.
You’re likely to invest in your own backyard because you’re biased towards it.
In order to minimise the risk of confirmation bias we attempt to challenge the status quo and seek information that causes us to question our investment thesis. Make sure you check multiple information sources to ensure that the conclusion you’ve reached is truly correct (and is not just the information supporting your personal belief).
Strategic investors know to dig deeper than the average investor. They are always on the lookout for investment grade properties that are going to outperform the averages – and that will probably mean investing in locations other than their home suburb. In fact, smart investors often look in other states when searching for this next property.
Source: 21/04/2017 your investment property, http://www.yourinvestmentpropertymag.com.au/expert-advice/kate-forbes/why-its-not-always-a-good-idea-to-buy-where-you-live-234950.aspx