Key points to note when considering purchasing an investment property.
Investing in property is not just a walk in the park. It requires attention and a well thought out process. Before deciding to invest in real estate, one must be well aware that property investment is a business and should be treated as such.
So you need to ensure you will be purchasing a property that can provide you with the highest possible returns. Here are some hints when choosing a good investment property.
RESEARCH - RESEARCH - RESEARCH
When searching for a property to invest in, it is important to spend the time to do your research. The trick is for you to know what to look for and make sure that you are choosing a property (and neighbourhood) that is within your investing range.
Here are the most important features to look for:
LOCATION - If you are aiming to attract quality tenants then finding a good location will help you secure a quality tenant. Look through suburb profiles online. There you will find loads of information about suburbs that will help you make an informed decision. Pay close attention to details on demographics such as population, current vacancy rate, employment rate and the suburb’s median rent.
EMPLOYMENT – Look for suburbs where there are growing opportunities for employment as these areas attract the most tenants. Be on the lookout for companies opening or moving to certain areas as there certainly would be an influx of workers moving there as well. Just be careful with the house prices though as they will likely rise as well.
AMENITIES – Does the location offer shopping centres, gyms, parks and movie theaters? How close is the property to the bus stop? What types of public transport are available? Look for areas with the best blend of amenities and private properties.
SPEAK TO OTHERS - Speak to other local businesses for example; accountants, property valuers and other real estate agents to help understand the location, market conditions and the demographic.
GUT FEELING - Don’t just go for the first property you see. As exciting as what it can be, take your time, and ensure your making the right decision and not the rash decision.