How does the aspect (which way a property faces) affect the potential value of an investment property?

Aspect refers to which way a property faces, and the accepted truth in Australia is that north-facing is good. A north-facing aspect usually means more direct sunlight, for more of the day. When considering any property then, is it a matter of north or nothing?

In a recent development of 20 units in Maroubra, in Sydney's east, quite a few of the units faced south but they looked over the water. If north-facing only was our stipulation, we would have missed out on the properties in the development which looked over the water, and which may well have had more potential for higher yield, higher capital growth or both.

Every property needs to be taken on its merits so there is no absolute truth when it comes to aspect What's really at stake is how aspect affects a particular property and what that means in terms of brightness and sunlight.

A north-facing property that receives direct sunlight all day can sometimes receive too much sunshine, and a lot of people don't want to have to keep the blinds drawn and the air conditioning on all day. What really matters is how the design of a property is affected by the direction it faces.

When considering aspect it's not just a matter of north, south, east or west, but what this means for a property given its design, and how this play s out it terms of light. Checking out a property at different times of the day is a good tactic, as is looking out for things such as mold and dampness problems in places where no light reaches.

The moral of the aspect story is that every property needs to be taken on its merits. Shying away from anything other than north-facing, for example, could mean you potentially miss out on a more suitable investment.

You may have a general idea of what's desirable in an investment property, but there's no substitute for being out in the field, doing the research. If you don't have the time to do the legwork yourself, consider using the services of someone who can do it for you.

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