Now is a great time to invest in property!
December Property News
In this report, we discuss some of the things to consider when purchasing an investment property. If you consider your options wisely, your return on your investment property may be far greater than you thought possible.
Where do you start looking for a good investment property?
People often think of their local real estate agent as the last port of call in the chain of buying a property. But when investing in a rental property, your local real estate agent has the professional resources and is trained to maximise your return and minimise complications.
Week in and week out your local real estate agent is involved in dealing with many rental properties ranging from the cheapest bedsit through to executive homes and holiday rentals. With this experience comes the knowledge to recognise a good rental property.
The local agent knows what permanent tenants and holiday makers alike are looking for. It is wise to stop and take the time to chat with your real estate agent’s Property Manager as to what they consider is the best property to rent out in the local area.
They may even have a property that is for sale, which fits the possible criteria of what makes a good rental property. Several minutes with your local real estate agent may save you many hours of hard work looking for the right rental property.
What type of property is best for renting?
You have to assess your investment based on what the majority of tenants and holiday makers would be looking for.
Is the property close to shops? Considering petrol prices and longer working hours, the average tenant is looking for a property close to shopping and other recreational amenities.
Will your property attract the right tenant? Are you looking for a secure long- term rental? Then it is probably not wise to purchase an investment property in an area that attracts a transient population. Similarly, it is no use purchasing the most expensive property in the area attracting the highest rents, because it may limit the number of likely tenants who can afford such a property.
Stick to the middle ground
In most cases, it is wise when investing in a rental property to purchase a dwelling which will attract the highest number of quality tenants. The type of property that the average tenant is looking for will usually give you the greatest long-term return on your investment.
Speak with your local real estate agent’s property manager. They will be able to help you answer all the above questions and most likely will have rental properties on their books ready for sale which the average tenant would like to rent!