5 essential aspects of an investment property
Purchasing a property for an investment is very different from purchasing a property for you to live in.
It does take some careful planning and research, and the first step to buying an investment property is knowing what makes a good one.
Here are four aspects you need to consider when searching for the right investment property:
- Location
A property’s location will impact rental demand, the quality of tenants, and the rental return.
Generally, people want to live in a safe area, close public amenities and with access to a good transport infrastructure. This includes access to commuter roads as well as public transport.
Families will also look at what schools are nearby too.
Desirable locations also have good lifestyle options, such as proximity to parks and gyms, cafes and other entertainment options.
- Market appeal
To a certain degree, the location may well dictate who is more likely to be attracted to your property.
Smaller properties in the city may see a bigger demand from young professionals, or possibly older couples who are downsizing, while a property close to the university would broaden the appeal to students.
A larger property will generally attract families, or a couple wanting to start a family; that said, there are plenty of couples who look for larger houses, just because they like the space.
- Attractive features
Appealing features garage, additional bathrooms, or a home office space could increase the property’s rental value.
A light property, with a practical layout and plenty of storage space will also make a property more attractive to renters.
- Neutral décor
Less is best when it comes to décor – key to a good investment property is to make the home a blank canvas.
Steer clear of bright colours, and opt for light neutral colours such as whites, creams, and beiges. Ideally incorporate styles and designs that can easily be paired with other design elements.
- Options to add value
For the more ambiguous investor, and one with a bit more cash, the old adage of buying the worst house and the street and making it the best comes into play. An older properties in need of a bit of work, will probably give you a better gain both in terms of rental return, and if you decide to sell the property later on.
Plus, any major renovation may attract tax deductions and/or contribute to a depreciation schedule. Just make sure you don’t over capitalise on the work.
Want to know what else makes a good investment property? Get in touch to find out more!
With nearly 50 years of business behind us, we know what works and what doesn’t, and our knowledgeable and experienced team are always coming up with new ideas to help you get the best from your property.
We are family run, and one of Newcastle’s longest established property management offices – call us on 02 4956 9777, send an email to mail@newcastlepropertymanagement.com.au or visit us in person at our Cardiff office.
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