4 Considerations when Choosing Investment Properties
- Help & Advice
Once you have made the decision to invest and reviewed your finances to understand your budget, it is time to decide what kind of investment property is best for you.
There are a number of different aspects to consider at this point, which should include property features, your target market, maintenance requirements and additional fees and outgoings.
Here is a breakdown of why each of these is worth taking time to consider before going ahead with the purchase.
1. Property Features
This may seem obvious, but its worth taking time to understand what features are important to you (and your prospective tenants) for an investment property.
Location: Generally people will regard a property more highly where there is established amenity close by. Existing retail, education, healthcare and public transport will add a level of convenience for renters of all ages.
Space: After the amount of time spent at home in 2020, there is a premium on space. Your budget is likely to only buy you a certain amount of space, so use it wisely with efficient floorplans that offer a variety of spaces to appeal to a wide range of lifestyles.
2. Target Market
Think about the type of people your property will attract and make sure it is suitable for them.
For example, an inner-city apartment may seem like a great location, but your pool of potential tenants gets a lot smaller if you cross families and older couples off your list.
People at different life stages will value different aspects of a property according to their priorities at that time. Be sure to choose a property based on it’s value from your target market’s perspective. (HINT: it might be different than your own!)
3. Ongoing Maintenance
As the property owner, you will be the one who is responsible for ongoing repairs and maintenance. Since it is your job to fix these problems, factoring in a property’s age is important, as older properties may have more issues, or issues that are more expensive to correct.
Purchasing a new property, or building one, might be a more cost-effective solution in the long run, especially since many builders offer structural guarantees and newer properties will still be covered by certain warranties.
4. Additional Outgoings
Finally, when you are considering your budget and finances, the type of property you purchase will need to be considered also, as additional outgoings should be factored in.
For example an apartment or townhome that forms part of an Owners Corporation (formerly known as Body Corporate), will attract an additional annual fee.
Not all townhomes fall into this category, so if you are considering a townhome investment property, be sure to ask about the additional outgoings and fees.
If you are looking for information on investment properties around Melton, please contact Aida on 0418 577 055 or at email@example.com