How to Find the Right Investment Property
This may take a lot of your time and effort but making a well-informed decision on where to buy the right investment property will improve your chances of a good return on investment.
Let’s take a look at the questions you can ask yourself as a property investor about how to find the right investment property.
Where is the right location?
Location will always play an important role when spotting a good investment property. Consider areas that are near good amenities such as shopping hubs, restaurants, schools, parks, hospitals, and public transportation. You can also look for locations that will have infrastructure development in the future. These factors can translate to demand and provide you with a healthy rental return. All in all, you want to invest in a property that’s located in a right area.
What is your objective?
Some property investors buy an investment property so they can renovate and sell for a quick profit, some to rent it out for long-term profit, and some to take advantage of capital growth in a rising neighbourhood. Decide on what you intend to do with the property so you can plan out how to achieve your objectives.
Who will be your target tenant?
The type of property and location you invest in will have an effect on what category of tenant you will attract. Most often, houses in the suburbs will appeal to families and units will appeal to singles or young professionals. To maximise the rental income potential of your investment property, consider doing renovations you think your tenant will want. For instance, try adding a bedroom in a house to make room for big families, or add extra storage in your small unit so your tenant can utilise every space in the apartment.
What kind of property do you want?
Different kinds of properties will have different price tags, rental income, and upfront and ongoing costs. It is important to determine what kind of property you want to invest in. Essentially, houses have better capital growth than apartments. On the other hand, apartments may have rising demand depending on the area. It's still best to do your own research when deciding what kind of property you want.