A property is a solid asset that has the potential to grow your wealth over the long term. However, it’s crucial to invest in the right properties, because making a mistake in this area can cost you, and not just financially.
Property-related hiccups and setbacks can create untold stress, worry and heartache, which achieve the opposite outcome to what successful investing is all about.
You should buy a property in an area which has adequate basic amenities such as power, water, sewerage etc. It is equally important to do your checks and balances while deciding on a project.
Property-related hiccups and setbacks can create untold stress, worry and heartache, which achieve the opposite outcome to what successful investing is all about.
You should buy a property in an area which has adequate basic amenities such as power, water, sewerage etc. It is equally important to do your checks and balances while deciding on a project.
Infrastructure in the area, connectivity, builder's goodwill and price of the property are key components a buyer needs to take into consideration. Buyer should also check the builder's experience, number of projects completed and delivered, banking institutions involved and present buy options available to suit your requirements. It is better you conduct a field survey before identifying property meeting your budget and location preference.
Here are some of the factors to look for when choosing the right property for your portfolio:
1. Look for growth areas
Capital growth is a significant factor in property investment, so always be on the lookout for areas that are expanding in terms of population, the economy, and local infrastructure.
2. Invest where you know
Know your potential investment location as well as you know your own home neighbourhood. Become an expert in researching the area, from vacancy rates and demographics to council spending and capital growth rates.
3. Hold out for returns
Especially for those whose cash flow is tight, it’s important to buy where you won’t go into the red. Be sure to keep an eye on rental yield trends when deciding on an investment property.
4. Opt for a tight squeeze
When it comes to vacancy rates, look for a tight rental market. Review the latest vacancy rate data on your chosen suburb; investing in areas with low vacancy rates significantly limits your chances of an empty.
5. See into the future
Find out what plans are in the works for an area so you can determine what its future looks like. Government and council websites often have information on infrastructure project proposals online, and you can get in touch with the local council for more details. It’s also prudent to keep an eye on any residential developments that could be going up near amenities, such as schools and shopping hubs.
6. Choose low-maintenance properties
Look for a property that is ready to rent out immediately (unless you have big plans to add value through renovating). For instance, houses with pools and large gardens necessitate a lot of care and time, whereas a similar home on a smaller block with a flat, grassed backyard is far easier to maintain.
7. Know what tenants want
Pick a property type that appeals to the people who are actively renting in that area.
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