The idea of purchasing an investment property can be daunting when you consider the list of things that could go wrong – paying too much, dealing with tenants, maintenance and so forth. There are a lot of positives though and it could set you up for financial stability for your future, so here is a checklist of things to look for in potential investment properties.
Location, Location, Location
There is a reason why there is a saying that you are better off buying the worst house in the best street. When it comes to value, nothing will be better for a suburban property than where it is located. Close proximity to the city centre, access to schools and public transport, quality of nearby roads and infrastructure, and the length of time a suburb has been established are all contributing factors to what is makes up a good location.
What Dining Establishments are nearby?
Are there some decent dining and drinking venues in the area? If so, chances are that the suburb will increase in popularity and the value of your investment property long term will be set to rise too. If cafes, restaurants, large supermarkets and the local McDonalds are prepared to move into the area, chances are others will want to move in too, so this will appeal to potential tenants.
Maintenance of the Property
How well has the property been maintained? What is it constructed of? Will renovations and large scale machinery such as Hyundai Construction Equipment be required? While period houses look lovely, they can be a lot of maintenance, so it may be worth considering the materials used to build the home. Bricks are solid and easy to maintain. Aluminium windows, preferably with security screens, are likely to last longer and not have issues with sticking in different weather. If the home has a fence and low maintenance gardens, this will be appealing to tenants and also to pet owners.
Features of the Home
A good kitchen, clean and tidy bathrooms, and storage are key factors that tenants will look for so consider this when looking at potential investment properties. Similarly, the opportunity to park a car or store items in a secure area means that if there is a lock up garage in the property, this will certainly add value to the home, increase the rent you can charge, and appeal to more tenants.
Recent Sales in the Area
Are houses in the area selling at good prices or are they staying on the market for long periods of time? Do your research on the sales of properties in the area so you are familiar with the value of the houses nearby and how quickly they are, turnover sales wise. Then you will have a better idea of how much you should be paying for your investment property. By following these guidelines you should be on your way to buying a safe investment.
Have you recently invested in a property? Or have you received some great tips on what to look out for? Comment below to share your stories and advice.