Purchasing an investment property is a significant decision to make. What factors do you need to consider and issues to research? Take note of these tips to make sure you’re investing in the property best suited to your investment goals.
Lifestyle
What kind of lifestyle do you think your target market leads? Young professionals want to live in close proximity to the CBD and transport, and not think about lawn upkeep. On the other hand, families tend to look for properties located close to schools and parks, and with fenced yards or pools.
Buying brand new vs old property
Buying brand new has a number of benefits, including depreciation benefits at tax time and minimal maintenance. Meanwhile, older properties present renovation opportunities that can significantly increase value and rental returns. Older properties are larger and have options to add additional bedrooms.
Location
Consider the amenities available for your target demographic. For example, it’s highly advisable to buy properties that are close to schools and universities, because not only is the property going to attract students, but it will also appeal to families because they mostly want to live somewhere close to where their children go to school.
Convenient features
If these items are not yet a part of the investment property you are eyeing, consider adding them as they will add value and tenant appeal.
- Air conditioning
- Ceiling fans
- Storage cages
- Dryers
- Security screens
- Fly screens
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