We’re always been told of a check list of what to look for in an investment property, however there are some things which property investors should try to avoid.

Bad locations

We are often talking about what makes a desirable location for a property investment, but what about the ones you should avoid? Here are some locations on our hit list:

• Proximity to social housing

Close proximity to social housing can be a turnoff if landlords are wanting top dollar for their rental return. For starters, there may be social issues, which prospective tenants don’t want on their doorstep. Furthermore, even in some of the more desirable areas, if the property is located next to social housing, the capital gains may be less later down the track.

• Nearby substations, telephone towers and power lines

There is a reason why properties next to substations, mobile telephone towers and high tension power lines are often so cheap…. The media is full of the potential affects these types of things may have on health as a result, there is a perception living next to these features is unsafe.

Another point to consider is, properties next to substations and telephone towers could take a while to sell in years to come.

• Noisy transport

While good access to public transport is a highlight on a tenant check list, they don’t want to listen to it all the time. There are some great noise-reduction features now available, but even so, when the weather is good, people like to open windows….. would you really want to live next to noisy traffic and busy railway lines?

Features to avoid in an investment property

When looking at an investment property, there are also some features we suggest keeping away from too:

• Swimming pools

Yes, some tenants do like the idea of a pool, and for some properties, they can be a plus. However, they can be a burden in many ways. Firstly, there is the issue of maintenance. Can you rely on your tenant to maintain it properly? While you can employ someone to regularly clean the pool and do essential maintenance and then increase the rent to cover costs, it’s not always something tenants are willing to pay for.

But it’s not just the financial burden and time spent in maintaining the pool, landlords have to adhere to strict safety legislation to minimise the risk of drowning.

• High maintenance gardens

The majority of tenants are busy living their lives and beyond mowing the lawn, many can’t be bothered to keep high maintenance flower beds looking good. Again, you can employ a gardener to manage it for you, but this will incur additional costs. If the property comes with a big garden, consider ways in which you can make it low maintenance.

If you want to know more about property investing, would like to talk to us about your concerns and some of the challenges you’re facing, or even ask whether a property you’ve seen is suitable as a rental, our experienced team would love to help. We can give you lots of information to help you make informed decisions on your property investment journey.

Simply give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

For more property management tips check out our Facebook page: www.facebook.com/NewcastlePropertyManagement