If you are considering investing in property, you need to consider the location of the building you are buying, especially if you are thinking about the rental real-estate market. If you buy property in an area that is unlikely to attract tenants, or at least tenants who are guaranteed to look after your property rather than demolish it, it pays to do your research before signing away your earnings on something that will not offer returns on your investment. In this article, we will give you some tips on how to find the best location for a property investment.
These are the questions you need to ask yourself when choosing a location.
Is the property accessible? Highways, train lines, and bus routes are important factors when looking at an area to invest in. The tenant will need access to and from the community they live in, with a variety of transport options, offering routes to work, schools, etc.
Is the district growing? Do your research and see if the area is under development from other property and land investors. If there is interest from the private sector, you know this is a community you will want to invest in. New shopping malls, hospitals, and property developments are all signs that the location has value.
Are there strong employment possibilities? Check online and keep your eye on the local media, and find out what employment options are available. If the area has strong and stable employment options, you know the area will attract people looking for work.
Is there natural beauty? For aesthetic as well as health reasons, many tenants are interested in property with some greenery in the local area. The premium properties offered by the Waterfront Group are particularly attractive, but if your budget doesn’t fit their requirements, at least look for a property with a park, woodland, or a beach nearby.
How well-populated is the area? Obviously, a well-populated town is going to give you a pick of tenants. If the population is declining, perhaps because of socio-economic factors, you need to reconsider buying a property in the area. As mentioned in our second point, you want to consider a location that is seeing growth, not reduction.
Is the location safe? You know that towns with a high police presence are a cause for concern. If the area has a particular problem with drugs and crime, it’s clear the area isn’t worth investing in. You will attract tenants, but they may not be the people you are looking to fill your property with.
Is it an area you would want to move into? There may come a time when you decide to move into the house you are investing in, or you may see it as potential accommodation for your children. Therefore, consider your requirements when picking a property, and the reservations you have for your own needs may indicate the factors your prospective tenants will take into consideration.
For further advice, speak to local estate agents and property managers in the area you are considering. Walk around the area too, and try to get a feel of the place you are thinking about buying into. You don’t want to see your money go down the proverbial drain, so do as much research as you can before you part with your cash.