The key ingredient of all successful investing is buying into tomorrow's trends, not yesterday's. So what does this mean to the investor of today?

The impact of the motor car had on the way we live was dramatic.  The technological advancements in communications similarly has changed our lifestyle.  The place of work will increasingly become the computer and this will be located within our homes, not necessarily just in the office.  This trend has increasingly become the norm for many people.  Shopping, working and communicating will increasingly occur online, lessening our need to commute or be near the traditional Central Business District.

Add to this the swelling retiree population and suddenly a new future property landscape appears.

Growth always comes from the land and locations - it is predominantly the location that increases in value.

Smart investors buy where people will want to live in the future.  They undersand trends, look for sign posts and make their moves accordingly.

The importance of asset selection

To highlight the importance of asset selection we need to only look back to property values of 20 years ago, relative to what those properties are worth today.  In 1983, for example, the median house price in Perth was just under $50,000, a price which would have bought a large home in areas such as Armadale or Craigie, an older more modest home in South Perth or Mount Hawthorne, or a shack in Scarborough or Trigg.  Similarly, it would have bought a block in Noranda with city views or three blocks of land near the beach in Mulaloo. 

Today that $50,000 investment in 1983 could be worth anywhere between $350,000 and $2,000,000 depending on which of these purchases was made.  The principle holds true today.  Not every property goes up at the same rate and this will especially be the case in the changing market that lies ahead.  Given a median price of around $450,000 where we choose to buy property remains important.

The right property choice can provide us with the lifestyle we aspire to and provide retirement options.  Simply put, the right property choice returns the favour by providing us with financial choice.  Now is a great time to set ourselves and our families up for any changes ahead and to capitalise on the fortunate position that we as Australians have been granted through our property and economic outlook.

The two fundamentals of property investing:

• the buying decision makes a significant difference
  
• the right buying decision is more important than the right price

Smart Property Investments work in times of inflation and deflation, in times of Bull as well as Bear markets, in times of recession and times of economic growth.