If you’re thinking of investing your finances and setting up for retirement, real estate is one of the smartest choices. Alongside being low risk, it has many benefits and excellent return potential.
However, that doesn’t mean you should go out and buy the first home you see. There are several things that can affect your success, and you want to have the best outcome possible.
In this article, we will talk about what exactly makes a great investment property.
Let’s get started.
Location
When it comes to any property investment, location is essential. A home close to transport, amenities, and schools will always be desirable in the eyes of potential candidates.
Choosing a house in the right neighborhood will also help you attract reputable and honest tenants. You can even charge more than a property that may not be as centrally located.
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Reputation
A property can be located close to excellent facilities, but that doesn’t mean the area has a good reputation. Things such as crime rates can significantly affect the value of a home and make it more difficult for you to find tenants.
Make sure you research and ask locals for more advice on each area if you aren’t familiar. Trust us when we say it is a critical step if you want to secure a great location.
Current Condition
Nobody wants to live in a dump, so when choosing a property, ensure that you are mindful of its current condition. Of course, you can always make repairs and conduct maintenance before placing it on the market, but this can get expensive.
Understand the costs and look carefully into what type of home people are searching for. It doesn’t have to be perfect, but it must be safe and livable.
Affordability
It’s tempting to charge a high amount of rent when you first start your property investment journey, but this isn’t always wise. Setting a significant price means it will take a long time before you find a tenant, leaving you to maintain an empty property.
Of course, you should charge what the place is worth, but first understand the current economic state and what other homes have recently rented/sold for. You have to be reasonable.
Management
Finally, while all of the above are important, what really makes the ultimate rental, is a good landlord. If you are present and maintain the property appropriately, chances are you will attract the right individuals.
That being said, standing up when you need to is essential. It’s your home, after all, and you don’t want it to become unnecessarily damaged.
Final Words
As you can see, many different aspects contribute to a great investment property. So, before you make any rash decisions, it’s worth taking the above into consideration when you’re house hunting. All of your hard work and patience will pay off in the long run.
