What To Look For In An Investment Property!
What is the key… to investing in property?
(Pardon the pun)
The return on that investment. Which ultimately means ensuring that the property is appropriately tenanted, maintained and that the rental required to secure your return, is consistently achievable.
We’re going to highlight some of the important aspects tenants look out for when renting, to make sure that you zone in on the right investment property.
We think you’ll agree with the first point.
Security is a priority for tenants, understandably. So the first things that tenants look out for are burglar guards, access control, lighting at entrances and whether or not there is an alarm system or security presence.
As an investor, look out for this too, and if they are not present, consider what it will cost you to implement additional measures.
Do you like a view?
Well, so do we. Views are often on the wish list for tenants seeking a rental property, especially if it’s an apartment or flat. While a sea view or beautiful city view are very desirable, sometimes looking onto a garden or pleasant landscaping can also be effective.
If the unit you wish to invest in has no view, consider what other features of the home make up for that.
Unless a property has a specific purpose (for example student accommodation opposite a university) then parking plays a significant role in obtaining a solid rental income.
One or two, or none?
One parking is often adequate for a studio or one bedroom unit however two parkings are ideal in just about any scenario. Consider what the visitor parking arrangement is as well.
No parking? No problem, if the property is within walking distance to amenities or transport. But let’s face it, we’re usually catching Uber these days in any case. Three parkings or more, consider renting them out if they aren’t going to be used, and subsidising that income.
Direct drive in access to parking and to the unit is also important. Nobody really wants to carry shopping, work documents or heavy items every day, especially in bad weather.
Watch our for levies!
As an investment property, you’d want the rental to cover the the bond repayments as well as a portion of the levies in order to get a decent return. High levies or frequent special levies can throw out your numbers.
Ask the body corporate for minutes of the last AGM and look out for any historical ‘special levies’ raised. A special levy is usually imposed over and above the normal levy for a period of time, to cover extra ordinary repair work or costly maintenance.
Several special levies can often indicate a mismanaged building and too few could mean that there is a lot of maintenance required.
And then there’s the all too obvious factor.
Location. Always an important element. Don’t think of location in terms of your own preferences however, rather consider the market that you are likely to appeal to, mode of transport used as well as the proximity of shops, services and transport links.
We can help you.
Consider investing in additional property and potentially producing a better return than if your money were sitting in a bank account. There are many more factors to consider, so we’d encourage you to get in touch and let us find that perfect investment property for you.
Author: Sam Harwood Property