Things To Keep In Mind When Buying A Property For Investment

If you have a decent cash flow, and is looking beyond investing in stocks and bonds, buying property as an investment is worth it. But there are many ways in which you can invest in property. You can buy a home, renovate it and then resell it at much higher price. You can buy property solely for renting it out too. Renting generates a steady monthly paycheck, like a classic dividend-paying utility stock. When it happens, price appreciation is a bonus.

While buying property as an investment here are the key things you should keep in mind.

Capital growth

While purchasing property, capital growth should be a strong consideration. Look around each area you consider. Is there potential for more development? Do the area and market trends suggest that every five to six years property prices are likely to double? Investors can benefit from discussing these factors with a real estate agent who is quite familiar with the property market and other comparable neighbourhoods.

Rental profit

Rental income is also another important factor. Choosing the right property is the most important factor if rental profit is your priority. There are places which attract more tenants. Choose wisely. Maintain the property well because dealing with tenants is not an easy task, and rarely do tenants maintain the property like the owner does. Think long and hard about how well prepared you are and also, know more about the Model Tenancy Act. 

Location

Property investment in a familiar and well-known area is quite easy, and less time consuming. Real estate agents and professionals will also guide you well if it is a well-known locality. If pick a location that is promising but is unfamiliar to you, do good research. You should find out more about neighbourhood area, proximity to schools, colleges, and CBDs, distance to nearest hospitals, and whether the property is near a busy road. In case you are planning to invest in a high-rise building, read this.

Feature

After doing good research, make sure that the property is appealing, and can please the targeted market. If you are aiming professionals and office goers, having a second bathroom would be more appealing than just one. For a family, fixed parking area is a huge selling point. For senior citizens or couple with a baby, having access to a lift matters. Pick a property that has widespread and extensive appeal. Find out who typically rents out property in that area. 

Aesthetics

Regardless of whether you plan to live in that property, you should be curious about the condition and aesthetics of the property. The aesthetics of a property should ensure that it appeals to a broad range of tenants. Look at the facilities, age of the property, the present condition and the configuration of rooms. Renovating your investment property is quite different from renovating your home. Both have distinct objectives. Home renovation is more related to your own comfort, lifestyle, living style and personality style. Investment property renovation is about the financial return and monetary gain.