Finding the Right Property to Invest In
Saturday, January 31, 2015, 3:00 AM | Leave Comment
Google ‘how to find the right property to invest in’ and you’ll receive plenty of hits. However, how many of these websites actually impart the knowledge you require in order to make astute investments in property and how do you know a good tip when you come across one?
It’s often the case that after hours of research we’re no closer to understanding the makings of a good investment property.
The list below summarises some of the most important points to help you gain an understanding of what you should be on the lookout for.
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Location
It’s always topped the list and that isn’t about to change anytime soon. The term ‘location’ is a bit vague for some, and understandably so, so let’s break the term down so that you know what you should be on the lookout for as far as location goes.
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Neighbourhoods
There’s a lot to consider where neighbourhoods are concerned, including demographics, typical incomes, average property prices and other factors.
You need to consider the neighbourhood because it will give you an idea of the tenant demographics that you will be looking at, for instance, young families, university students, etc.
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Schools
Local schools can tell you a lot about how good, or how bad, an investment in that area will be. Generally speaking, the quality of local schools reflects the value of the property.
If local schools are good, then prospective tenants will be more likely to want to live in that area which places your investment property in higher demand and that’s key to enjoying healthy returns.
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Crime
A traditional concern of most people, no one wants to live in an area with high crime rates.
If you want to get the real story on crime rates in a certain area, pay the local police a visit, look for signs of vandalism as you check out the local area, and keep your eyes peeled for security signs on local residences.
The more signs there are the higher local crime rates will generally be.
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Jobs
Like having good schools in the area, people naturally migrate to areas where there are good employment opportunities.
It’s easy to find out how certain areas rate in terms of employment opportunities on government websites, but also keep an ear out for word of new shopping centres being planned or big companies moving into the local area.
Developments like these increase employment opportunities and place local properties for rent in higher demand.
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Condition
Unless you are buying a new home, the condition and age of the property you consider investing in is extremely important.
Pre-purchase building inspections are a must these days, but as you will have to pay hundreds of dollars to have a property inspected and reports written, you need to be fairly certain that it’s a wise investment beforehand.
The Australian property market is attracting a lot of attention from property investors. Find the right property to invest in now and get a head start on the rest.
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