A good investment property can fast-track your future finances. But buying the wrong one can be disastrous. Here’s a few things to consider when determining a property’s investment value.
The key criteria
- The basics
Design-wise it must have a good floor plan, a sturdy structure and an adequate amount of natural light. The neighbours and street also make a difference – is it quiet during the day but loud at night ( or vice versa); is there a lot of traffic noise; is the street made up of primarily rental properties; and so on.
- Buyer and tenant demand
Knowing who is buying and importantly, who is renting, in the surrounding area is critical in determining whether the suburb and incumbent property is a good investment choice. Talking to estate agents at open for inspections is a great way to build a picture of what is happening in the area.
It makes sense to buy a property near amenities but which ones? Using the information you gleaned from estate agents, consider what might be most important to your potential renters – shops, cafés, restaurants, schools, community centre, sporting facilitates, public transport or freeway access.
- Suburb demand
It almost goes without saying you want to buy a property that is in demand. But how do you work this out? Research is key.
Investigate the suburb’s future plans – think infrastructure, new schools etc. Next, take a look at the last few years of property prices and the area’s population growth rates. See if you can find out forecasts for both too. Collating this information will give you a picture of the suburb’s potential and whether it’s a good investment.
On hand help
Both being informed and working out your numbers is crucial in making a great investment decision. But it’s also important you fully understand where you stand financially. If you’d like a bit of help on this front, our team of experts can assist in reviewing your current situation. Please feel free to get in touch.