Understanding what makes a good investment property begins with determining your investment goals. Are you looking to build long-term wealth, generate passive income, or save for retirement? Before making any decisions, it’s essential to gather as much information as possible. Read on to discover some of the most important factors to consider when searching for an investment property.
Top 5 Things That Makes a Good Investment Property
Research the area you’re considering investing in and investigate factors like demographics; is it an area with a lot of young families, heavily populated by students, or are most residents retirees?
2. Employment Opportunities
People are more likely to settle down in an area where there are viable employment options. Many prefer to live close to their place of employment to reduce commuting times, so renting out a property in an area with good employment opportunities is a smart financial decision.
Take a walk around the neighbourhood and make mental notes of the parks, cafes, gyms, shopping centres, public transportation hubs and other attractions that could draw in potential renters.
4. Property Taxes
Find out how much the annual property taxes will be in the area you’re interested in. For instance, high property taxes might not be an issue if you pick a desirable neighbourhood that draws quality renters who intend to stay for an extended period. You should also find out if the cost of property taxes will increase.
5. Crime Statistics
Nobody wants to live in an area where crime is prevalent. The local police department should have updated crime statistics for the area. Check the most recent vandalism and other crime data and note any increase or decreasing trends in crime. You could also enquire about the frequency the police patrol the neighbourhood.
Before starting your search for a suitable investment property, it’s essential to establish clear goals on what you want to achieve from the investment. Once you’re ready to start looking, understanding what makes a good investment property is crucial to your search. Consider factors such as employment rate, demographics, local amenities, property taxes and the crime rate of the area.
Contact your local PRD specialist if you would like more information on the area you’re looking to purchase in.
Disclaimer: The information provided is for guidance only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. PRD will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.