So, you’ve decided to invest in property as a way of securing your future wealth but you’re not sure what you should be looking for in a property. That’s OK, let me show you the 8 most important ways to spot a good property investment.
8 Ways To Spot A Good Property Investment
- The Neighbourhood – the best neighbourhoods are desirable to live in and are full of people who live there all the time. University properties, for example, can be good value but the trade-off is that a lot of people in the area only live there part-time. If you need a tenant all the time to cover the mortgage, find a neighbourhood where most people don’t take the summer off.
- Schools – it’s not just the availability of a school that makes families choose an area; it’s also the quality of that school. The better the local school, the more of a premium parents will pay in rent to access that school. It will also help increase the equity value of the property in the long-term too.
- Crime – it should be obvious but nobody wants to live in a neighbourhood where junkies burgle and muggers roam free. You can get pretty good information on crime statistics from the local police. You want to show an interest in vandalism, serious and petty crime and current trends in the area. It’s also worth asking whether the police patrol the area on a regular basis or not.
- Job market – people go where the money is. They always have and they always will. An area with a ton of job opportunities is one in which there will be demand for housing but as I’ve said before; you don’t want to pick a one industry town. When the industry goes, so may your rental income.
- Amenities – a home is an awesome thing but having other things to do near home is really important to most people. Movie theatres, public transport hubs, shopping centres, etc. the more amenities an area has and the better quality those amenities are will help put a premium on rents and equity values.
- Future Developments – neighbourhoods aren’t static and it’s a good idea to get an idea of what’s planned for the local area. Nice new developments of premium housing or amenities might dramatically increase the potential for revenue generation of a property. Conversely, if someone’s building a sewage works next door, it’s probably best to look elsewhere for an investment property.
- Availability and Demand – a large number of rental listings in the area may mean that demand has recently dropped off. Conversely, a lack of listings may indicate that housing stock is in short supply locally.
- Rental Incomes – before you commit to an investment property, you’ll want to gauge how much of a return you can expect. You can work this out from listings.
Of course, there’s more to it than you can cover in eight points but this is a great place to start. An even better place to start would be to work with me to realise your wealth potential.
