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Choosing Investment Properties

 

After arranging finances and making finances available for property investment, you can start searching investment properties in the area where you wish to purchase a property

Considerations when buying an investment property

There are three main issues which must be considered when buying an investment property.

One consideration is the location of the investment property. Property prices can be greatly affected by the location. Additionally, location can also affect the tenant demand. When considering location review the proximity of the investment property to public transport, shopping centres schools, sports facilities, entertainment facilities and various other facilities. Moreover, consider whether the streets nearby the property are quite streets or noisy, busy streets. Also, consider the proximity of the property in regard to other properties and neighbours as well as the appearance of the houses in the area, for example: ‘Are the other houses in the neighbourhood well maintained?’  Asocation is a very important consideration when you are planning to buy an investment property, consult with an investment property advisor before you buy.

Another consideration when searching for an investment property is whether the property will be within your budget. It is unreasonable to look at houses which are priced much greater than your finances can handle, thus before you search decide on a price range for an affordable home (as accorded by your financial circumstances and family responsibilities).

A third consideration is the quality of the property itself, including it size and age, as the property must be suitable for the target market. When considering the quality of the property investment consider the following questions:

  • Is the investment property spacious or confined?
  • When was the property built? Was it built more than five years ago or less than five years ago?
  • Has the property investment been well maintained?
  • Is the investment property the required size?
  • Is it a property that will maintain its resale value?

If the property is to be used as a family rental property it should have three or more bedrooms and at least two bathrooms. An investment property should also have security if in an area where there is the threat of crime or if it is located within inner city locations. It is important that all investment properties are assessed as per these three issues and various other issues.

Locations of the best investment properties

Investments properties near beaches or bays or other bodies of water are considered to be an important location factor for investors. Yet, investment properties which are located close to the CBD (within up to fifteen kilometres of the Central Business District) are also in demand. This is especially the case when buying a property investment close to the Brisbane CBD, Sydney CBD and Melbourne CBD.

Choosing a residential property investment

If you plan to live in the residential property investment then it must be suitable for you and your families’ requirements. For example, in regard to the location of the residential property, if you use public transport, then you want your residential property investment to be near public transport. Another examples, is that the residential property investment should have enough rooms (including a few bedrooms and a few bathrooms) so that a family can comfortably live there.

Tenant demand and choosing a rental investment property

If you plan to purchase a property investment and use it as a rental investment property then it is important that you make a purchase based on tenant demand. To ensure that there is demand for an investment property in an area view statistics which can identify locations and areas where tenant demand is the greatest. Previous studies with regard to tenant demand have identified properties close to leisure facilities, beaches and transport facilities as being popular for tenants to reside in. Additionally, there is tenant demand for properties in suburbs and areas close to Central Business Districts (where workplaces are located). As investment  properties close to city centres and various facilities are places where working professionals want to live, they are places that an investor must consider.

As the location usually affects the tenant demand it is important to buy a property investment with a great location for greater tenant demand. Greater tenant demand is important so that the property owner will be more easily able to rent out a rental investment property to a reliable tenant.

When you purchase investment properties which are in a great location, especially in areas where the tenant demand is high, you can have a wide range of potential tenants to choose the most suitable and reliable tenant from. Ensure that you consider all these things when buying an investment property so that you can purchase the most suitable investment property in Queensland, Australia.

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