Investing in a real estate property gives you the potential to grow your wealth over time. Changing the interiors or exteriors can even increase its value. One thing you can’t change, though, is the property’s location.
That is why it is important to pick the right investment location for your chosen property. Picking the wrong one can only cause stress and worries. It also affects the outcome of your investment.
Let me give you some tips that will help you identify the investment location that is right for you.
1. Invest in a market you know.
Go with one that you are already familiar with. This helps reduce the time you need to research about the area. If buying in another state interests you, hiring an agent is your best move.
2. Get the right people.
A local agent gives you more details about your desired investment location. But, there are also matters that involve taxes, permits, and more. So, put together a team of professionals to help you out.
3. Know about developmental changes in the area.
The kind of developments happening in an area can affect the property’s value. They also help determine what types of tenants your property may attract in the future. Check with the local council about what these developments are.
4. Know what your future tenants like.
If you are looking to earn rental income from future tenants, know their preferences. Go for an investment location that your future tenants prefer.
5. Find out existing features and amenities.
Different people would love to have different features in their homes. These can be garages, swimming pools, big yards, whatever you can name. Know what features your future tenants desire. Make sure that these features exist in the property.
Easy access to amenities like markets, schools, and shopping malls is also a factor. A location with easy access to these amenities is often in high demand.
6. Know the vacancy rates in the area.
Pick a location with low vacancy rates. A low rate means that your property won’t be empty for too long. It also helps make the property easier to sell in the future.
7. Check the total costs involved.
Consider the costs you may incur apart from the property’s purchase price. Older properties may need repairs so you need to consider the costs of such repairs.
8. Compare sales details.
Check the average prices of the properties in your chosen location. Compare data from various areas. You can get help from your agent about which ones are better for your investment.
Location, location, location! I can’t stress the importance of location enough. It’s always best to have someone knowledgeable by your side to help you pick a good location.
As a mortgage broker, I can help you find it. For over 13 years, I have been assisting buyers in finding the right properties. Reach out to me for your inquiries. Not only will I assist you in the search but I will also help you with the pre-approval process.
Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans. Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy. He is the host of the My Personal Economy Podcast which you can check out here.
Additionally, you can follow him on Facebook