If you’re thinking of going into property investing, it’s important that you pick the right home to buy. Buying an investment property is obviously not the same as buying a home for your own family. There are different features and variables that you should take into account. A home that is good for you might not be good for your target tenants.
The house you buy should suit the kind of people you want as tenants. Think about what they will need and how they will live their lives. You should also think about which features make a property most profitable in the short-term and the long-term. That’s the only way to make money from your properties in a sustainable way. Read on to learn which features your ideal investment property should possess.
Strong Neighbourhood
The neighbourhood in which you buy needs to be strong. This is about creating the right first impressions. When someone views a home that they’re thinking of buying, they will have to drive through the neighbourhood before they arrive. This means that they will start to form an opinion of whether they want to rent or buy a property before they even see the home. That’s why it’s so important to make sure that you buy a home that is located in a strong neighbourhood. A poor neighbourhood will also hurt your profits, and there’s not much you can do to change it either. Keep this in mind when browsing and buying.
Appropriate Local Facilities
The local facilities on offer in the area where your investment property in located should be appropriate for your target tenant. For example, families will want to know that there are good local schools nearby for their children. So, once you have an idea of what kind of tenants you want, think about what you have near your investment property. People think just as much about the surrounding area as the actual home itself. You can learn more about an area before buying a home by talking to an estate agent. You can read here from Bridgfords if you want to find out more. The benefits of using their knowledge are huge.
Good Rental Potential
It’s a good idea to study the local rental market in the area where you’re looking to buy. Analyse the stats and decide which kinds of properties will offer the most profitability for you. The rental potential of a property depends on many factors. But the local area is one of the biggest. It’s best to rent in an area that is improving and where rental prices are on the rise. These areas help you to ensure that your rental prices will steadily rise, making your investment more and more profitable. If the prices in a certain area are on the decline, you should stay away and find somewhere better to invest.
Adequate Space for the Target Tenants
For families, in particular, having enough space in the home you buy is very important. If they don’t feel like the space on offer is adequate, they simply won’t rent the property. So, if you are targeting families as renters, you should think carefully about the size of the bedrooms. Storage space is another thing that potential renters will look for when they are deciding whether or not to rent your property. Lastly, don’t ignore outdoor space. This form of space is just as important as any other. If you fail to buy a home that offers outdoor space in which children can play safely, families will be less interested.
Affordability
Money is always what matters most when you make any kind of investment. This is something that every investor should understand. You might want to invest in an expensive property that will be in demand among renters. But if you can’t afford to buy that kind of home yet, stay away. It’s much better and wiser to find a property that is within your price range. You can then start small and make a minor profit on the home. This will act as the launch pad for your future endeavors and success as an investor. Stretching your finances too far when you’re just starting out is never a good idea, so resist this temptation if you can.
Potential for Upgrades and Improvements
Bad things don’t have to be completely bad when you’re investing in homes. Sometimes, it’s good to purchase a property that has lots of negative things and faults. These faults might mean that you can get the property for a lower price that you would otherwise be able to. You can then make upgrades and improvements to the home, raising its value in the process. It’s a good way of getting more money than you bought it for when it comes to selling the property. These improvements will also increase the rental potential of the property. So, don’t rule out a home just because it has some faults that need fixing. It could be a blessing in disguise.
Solidity and Reliability
The home you buy needs to be reliable. You want that home to remain profitable for many years to come. But if the home is old and it has lots of big problems, that won’t be the case. You should always make sure that you have a comprehensive survey carried out on the property before buying. That way, you can be made aware of any structural problems that might cause you major headaches in the future. As long as the home seems solid and secure, you should be able to rely on it. But don’t fall into the trap of buying quickly and failing to check these kinds of issues. This often happens when investors buy properties at auction.
Investing in a property is a big move for anyone. So, make sure you plan out the things that you want from your rental property before you begin to buy. It’s the only way to ensure that you will end up with the right investment property for you.
