Property investment is a big financial commitment so you want to make sure you get the best bang for your precious bucks. Whatever your long term investment goals, there are a huge array of factors to consider when choosing the ideal property. Here are some ideas to get the ball rolling:
– Location counts
Finding the right location for your investment is half the battle. This factor drives the price and rental returns – and can make your foray into property investment a successful one. When you’re looking for a property do your research; Ask local real estate agents and property management companies about the health of the market. Glance across advertised rental prices and yields – and keep an eye on vacancy rate statistics.
Remember that trends are more powerful than individual results, so consider areas where high growth is expected.
There could be times when you can’t find tenants immediately but generally a low vacancy rate suggests you’ll find tenants easily. All this information can give a good idea of the demand for rental property in an area. Depending on your investment goal, you want an area where demand surpasses rental supply – after all, you don’t want an empty property!
– Know your market
If you’re renting the property out, understanding your target market is equally important. Families have different preferences than young professional couples, while retirees are at the other end of the spectrum than students. Look for features that prospective tenants will find appealing. Tenants might appreciate off-street parking, a garage or lots of storage space, it all depends on your target market.
Well-maintained properties often secure higher rents, so consider how much work you will have to do to bring the property up to scratch. A run-down or damaged property may not be worth the investment in the long run.