The property market is hot right now, low interest rates and you might be thinking about your future and investing your hard-earned savings into an investment property.
There are several factors to consider when looking to buy an investment property, and there’s a lot of information overload, which can have your head spinning.
Here is our guide for what to look for when buying an investment property.
Capital growth and rental income
The reason you invest in anything is to make money, so capital growth is the most important thing.
Consider factors such as where are you buying? What is around? Is there potential for more development, or will demand outstrip supply? These are the questions that will generally increase your value if you choose somewhere with them in mind.
Location
It's recommended that you don't purchase an investment property in a location that you're not familiar or comfortable with. If you're buying out of your home city, do the research.
Somethings to consider:
- Would you be happy to live in the area?
- Is it close to local schools, public transport, and shops?
- Is the area a location that is going to benefit from new roads, infrastructure, etc in the next ten years.
Aesthetics
While it's not a home for you, it will still be a home for someone, and so it should appeal to a broad range of possible tenants. Is it clean, in good condition, and does it have a good layout?
The property should flow from room to room; if it's not configured correctly, it may put tenants off.
Features
With any rental property, you want it to appeal to the greatest’s number of tenants. Look for properties that offer that little something extra, like a second bathroom or a lock-up garage.
Also think about things such as blinds on windows, fly screens, storage, and cupboard space.
Invest for the long term
Always think of property as a long-term life investment, so pick something that you are happy with and can afford to keep a hold of for a longer period.
You shouldn’t look to overextend your finances to try and make a quick win, property should be a long-term investment in your future.
Happy shopping