Wednesday, April 23, 2014
It's important to choose the right property if you want to make a profit and the reap the benefits of your investment. Choosing a property to invest in and choosing one for personal use require two different decision-making skill sets. Here's what to consider when investing in property...
Attractive for the market
There is a corresponding market for every potential investment property. When buying property, scout the surrounding location to find out what type of market it has. Is the property near a school where there is a market for student renters? Or is it near a business district with a young professional market? Once you’ve established the market, assess whether the specific property you’re looking at is attractive for the market. Find out the needs of the market and assess whether the potential property will meet these needs. It’s also important to scout nearby competition if you’re going to eventually rent out the property. Are there any better options than the property you’re considering?
Potential growth in value
Aside from the market, you should also examine the property’s intrinsic value. Is there potential for growth? Properties near schools, central business districts, public transport and shopping malls are great options. These types of properties have a potential for growth in a good market or at least, they may also be able to keep their value in a bad market.
If you’re buying a pre-owned or a newly developed home, choose a property with quality construction. This will pay off with less repair costs over the long run. Buying a quick fixer-upper instead of a totally run-down property will also make it easier and faster to put back on the market and make a quick profit. Quality properties are usually worth more than their cheaper counterparts, but buying a good property can better ensure its desirability in the market.