Looking to join the throngs of successful real estate investors who turned home-buying into a lucrative part-time career? The first step is to take a good look at yourself, just as closely as at the properties that you might buy.
Why? You need to be able to empathize with your potential tenants when choosing properties, so you should acquire something that’s going to appeal to renters as much as it appeals to you, and give the kind of returns you want. Here’re the top 10 things you need to look for when buying an investment property to provide you with a good source of revenue.
Do your research. You need to understand what kind of property is in demand in your area, the type of community will appeal to potential tenants. Talk to property brokers and managers, check ads, and talk to buyer’s agents to know what is the most desirable type currently and in the future. You may also check online listings to know what most tenants are looking for.
Buy near the Central Business District (CBD). Historically and even statistically, areas close to CBD, like house and land packages Brisbane and other capitals will always deliver strong returns. They are locations that are always popular among renters of both apartments and houses since these areas have more job opportunities, better transportation, and just about better of everything.
Look beyond potential rental returns. It’s important to know something in terms of capital growth as well. Oftentimes, this is as important as choosing a house. A house at the end of the street may not be as desirable right now, but as a location rises in value, so will a house and its appeal in the future.
Buy near public transport. A property near a transport hub will attract tenants like crazy. This is because people look at the convenience of going to work and back at home with the benefit of lesser commute.
Check out sources of possible tenants in the area. Is there a nearby university, another kind of learning institute or college? Are there malls or parks? How about other recreational spaces and landmarks? These things pull tenants and put make your investment property in high demand.
Don’t get ‘too’ emotionally attached to a property. People watch dramatic TV renovation shows and then fall in love with the property they bought and renovated. You can’t afford to do that. It’s an investment property, and you’ll buy it primarily for the rental returns and the possible capital growth. Put logic above emotions, and you’ll be less likely to fail
Turning my home into an investment property
Turning your home into an investment property is a financial decision, not an emotional one. By keeping your home and running it as an investment property, you don’t need to pay stamp duty, marketing costs, building inspections or conveyancing fees.
You should acquire a property in a good community where amenities are complete. Check house and land packages Brisbane, for instance. The location is near the CBD and provides owners with plenty of recreational facilities and ample breathing space while still being near transport hubs.
There you have it! Ready for your next investment property? Follow the tips above and you’ll have a strong foundation of what to look for. Best of luck!