Many believe that property investment is meant only for the wealthy. But there are excellent opportunities for property investment which can work with almost any pocket. Buying an income property is a great adventure to boost your portfolio return. However, investing in real estate can be challenging for a beginner. But it can be very exciting and rewarding when you have the right strategy and make the right choices. This blog will explore the top aspects to consider when seeking a property investment.
1. Neighbourhood
The neighbourhood where you will purchase your investment property will determine your target tenants and apartment rate. For instance, if you get your property near a college, students will dominate your apartments. But you can struggle to fill vacancies when students leave during their holiday periods. Also, some locations try to discourage investment property conversions by introducing exorbitant permit charges. Therefore, make sure to do a thorough research of the neighbourhood so you are on top of all the ins and outs of the neighbourhood.
2. Crime
You do not want to buy your property next door to a hot spot of criminal events. Check with online state, municipal areas, and the local police for accurate crime statistics for the community. There are many great resources for analysing crime statistics, for example Red Suburbs, which provides crime data across Australia. Ensure you check the rates of property damage and serious and petty violations. In the case of crime activities, note if the rates are increasing or decreasing. You can also ask locals about the recurrence of police presence in the community.
3. Job Market
No one wants to live in a location where there are no employment opportunities. Therefore, ensure you buy your investment property in an area with growing employment opportunities to attract more renters. To find out the area job availability rates, check local job websites to evaluate the demand.
You may also notice advertising which explain the advantages of moving to the neighbourhood. Take this into account when researching an investment property.
4. Amenities
Buying income property in an area with a wide range of lifestyle amenities can attract tenants. Check the area for parks, fitness centers, dog parks, entertainment theaters, malls, public transportation, and other amenities that attract tenants. If the neighbourhood has attractions sites like museums, art galleries, libraries, monuments, zoos, and many more, it is an extra bonus to attract tenants who love tourist attractions.
Amenities inside in property just as important and go far beyond the number of bedrooms and bathrooms. It also includes how much natural sunlight it has, outdoor space, parking space and if it has a home security system.
5. Future Advancements
Before deciding to buy the investment property, visit the municipal department for details on constructions or plans already made for the neighbourhood. If you find various property developments going on, that is a sign of growth. Bear in mind that new constructions can also impact the surrounding property prices to rise or decline.
Parting Thoughts
Before beginning your property tour, make sure you search for a property on your own. Searching for an investment property on your own can allow you time to find one that suits you best, unlike finding a property with an agent who can pressure you to buy a property fast.
Buying a property for investment is great and very rewarding when done right. But make sure that you consider all income and expenses before going ahead.
