Top Features of a Profitable Rental Property
If you are planning to purchase a residential rental property, you should pick the best investment in the right neighbourhood. The perfect property is sure to boost your investment portfolio. When the right choice is made, investment properties are always exciting and rewarding. However, there is no denying that investing in the real estate market is a daunting task for first-time buyers.
The real estate business is not easy, and the industry is full of landmines capable of obliterating your returns. Hence, it is crucial to carry on intense research before you dive into the real estate market. When looking to shop for an income property, there are a few things that you should consider.
Start Researching
Begin the search for a Perth rent property yourself before you plan to bring a professional into the picture. There are chances that an agent may force you to buy you an investment property, even before you have found one that suits your needs perfectly. The research that you do to buy a suitable investment property will help you narrow down a few characteristics of it as per preferences. These include the size, location, amenities, and type of the property. With the help of numerous online apps available, you can shortlist a few best available options. After that, you may need an agent to help you complete the purchase.
Top Features to Consider
When searching for the right rental property, there are a few things that you should consider.
● Neighbourhood :
The neighbourhood of your property will determine the type of tenants you get along with the vacancy rate of your property. For instance, properties for rent Sydney stay filled up throughout, whereas, properties near a university will dominate students as your tenants. You should also know that a few towns attempt to discourage rental conversions, while imposing exorbitant permit fees, etc.
● Crime:
People don’t want to live in a locality that is a hot spot of criminal activities. The public library or local police should have appropriate crime statistics of the neighbourhood in which you are planning to buy a rental property. You should check the rates of serious as well as petty crimes, vandalism, etc., and see whether the crime rates are rising or declining.
● Schools:
If you plan to buy homes that are perfect for families, consider the quality of local schools located nearby. When it comes to properties for rent Perth, people are more concerned about the monthly cash flow because the value of the rental property comes into the picture when you eventually sell it. If the property doesn’t have a good school nearby, it will eventually affect the value of your investment.
● Amenities:
Take a tour of the neighbourhood and check out the gyms, parks, movie theatres, restaurants, public transportation links, and several other perks that are beneficial to attract rent my property. You can choose to get an idea of where you can get the best combination of public amenities and private property.
● Job Market:
The locations that have growing employment opportunities are believed to attract more tenants. If you see that a major company has announced that it is moving to an area, you can plan to buy a property in that area since people searching for a place will look forward to living there. It further causes the price of the home to go up and down.
● Property Taxes:
Property taxes vary greatly depending on the area you choose to buy an investment property. Hence, you should choose wisely and know the amount of money that you will have to pay as taxes. There is no doubt that a great neighbourhood attracts more tenants, but at the same time, there are several unappealing locations that have high taxes. Also, find out if there are probabilities of rising property taxes shortly. A town suffering from financial distress may hike taxes to a great extent beyond what a landlord can charge in rent.
● Average Rents:
Rental income is bread and butter for many, so you must consider the average Port Macquarie rent of that area. Ensure that the property you select is capable enough to bear enough rent to cover further the payment of taxes, mortgage payment and other expenses. Research and gauge the area very well and know where it will be in the next five years. There are chances that you can afford a particular area now, but if the taxes are expected to rise in future, then this property may result in bankruptcy later.
● Future Development:
The municipal planning department has all the information and plans related to the development of a particular area that is zoned out already. If you see that a lot of constructions are going on where you choose to buy an investment property, then it is a good growth area. You should also consider new developments that may impact the price of surrounding properties located. In addition to it, new houses constructed can also compete with your property.
● Get Information As Much As Possible:
Official sources are great, but you should also consider talking to the neighbours to better understand a locality. You can talk to the renters staying in other properties and several homeowners as well. Renters will be more honest about the negative aspects of a neighbourhood because they have not invested anything in the property. You should also choose to visit the area on different days at different times of the week so that you can know more about your future neighbours. A property that proves best for beginners is typically a single-family dwelling. Condos are usually low-maintenance because the association of condo takes care of external repairs and homeowners have to worry about only the interiors.
Final Thoughts
It takes a lot of research and footwork to line up the choice of properties. It is crucial to keep your expectations realistic to find an ideal property. Also, ensure that your finances are healthy, and you can wait till the time your property starts generating cash.
