Many have turned to property investment especially after hearing all the amazing stories of how people go from rags to riches for having the Midas touch when it comes to prospecting the right property for investment.
From the first decision to invest in property to actual shopping for an income property, there is a lot of work to be done. It's definitely a daunting task for the first-time investor and it could be a tough business as buying a property is probably one of the biggest financial moves in life. Before we jump ahead of ourselves, there are certainly a number of things that we should keep in mind and if followed aptly, many errors can be avoided. Of course, taking assistance from a well-informed person can prove great support. Just to fulfil these requirements are the real estate agents and a really handy tool like PropertyGuru in search of property for sale.
A good investment starts with more than instinct
Having a real estate agent will definitely come in handy in completing the purchase of your desired property but you as the investor should start searching for your investment on your own. The most important thing is to take an unbiased approach to all the properties and neighbourhoods within your investing range. The following will be top 8 things to consider when searching for the right income property, be it for rental or for a handsome payout in future.
Neighbourhood: The quality of the neighbourhood in which you buy will influence both the types of tenants you attract and the potential buyers. If the neighbourhood is near a university, chances are your pool of tenants will be mainly made up of students and you might be looking at a higher vacancies rate. Schools: Are your potential tenants married the couple and ready to have children? If so, they will need a place near a decent school. The quality of the school is as important as it can easily affect the value of your investment. The reputation of a school can make or break the neighbourhood property value.
Crime: Crime index is something we need to pay attention to as people want to live where there's little or no crime. A safe neighbourhood means people will feel safe to go out for a jog and interact with their neighbours.
Job Market: Locations with growing employment opportunities will attract more people especially those with close proximity from transportation access. If you notice any announcement of the new or upcoming business district, you can rest assured that the area will flock with employees and that means more potential tenants.
Amenities: You will have to check the potential neighbourhood for projected parks, malls, gyms, movie theatres, public transport hubs and all the other perks a well-designed township should have.
Future development: Do take special attention to the information on all the new development that is coming or has been zoned into the area. If there are many new housing developments, it's probably a good growth area. However, watch out for some developments that can hurt the price of the surrounding properties.
A number of listings and vacancies: Again, making use of property portal besides getting you a good tool to scout for potential properties, it can give you a really good idea if a particular neighbourhood is budding especially if you see an unusually high number of listings.
Rents: Rental income will be the bread and butter of your rental property. You can do a quick check on the rental rate of a particular property.
Remember, investing in properties is not an easy task that can be undertaken now and then. The field of property investment and owning a property is peppered with land mines that can obliterate your returns. It's thus important to do ample research, so as to avoid making any mistakes. Finally sticking to the fundamentals is significant.