Starting a rental property business does entail a lot of work that, with the overwhelming amount of tasks needed to be done on the onset, most investors get discouraged. 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 the first thing you need to do is to secure the right property that can provide you with the highest possible returns. Here’s your guide to shopping for a good property investment.
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:
NEIGHBOURHOOD – Let us first start looking for the right neighbourhood. If you are aiming to attract quality tenants then finding a good neighbourhood matters a lot. Scan 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. You may want to look at the suburb’s amenities and landmarks that would possibly draw people to it. It also helps to read suburb reviews and ratings to allow you get a good feel of its culture and overall vibe.
SCHOOLS – Many landlords know this for a fact — that properties close to schools and universities have a higher chance of getting rented compared to those that aren’t. Schools not only attract students, they also attract couples who have or are planning to have children. However, just the proximity to any school is not enough. Do your research and make sure that the school has a good reputation as it directly affects the value of your property.
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.
CRIME RATE – Who would want to live in a dangerous neighbourhood? Ask for accurate crime statistics from the police for neighbourhoods you’re interested in. Never ask the homeowner you are buying the house from about this as they are likely not going to be fully honest with you about it.
AMENITIES – Does the neighbourhood have malls, 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.