The minute you decide to buy an investment property, you need more than just finances. Usually, first time investors have a difficult time determining good investment property from the not so good property. A good investment property is bound to give you better returns and give you the value for your money.
Here are some of the factors that should guide you when looking for a good property to invest in:
1. The Neighborhood
This is a fundamental factor to consider when looking for good property to invest in. The neighborhood will influence potential tenants and probably the number of vacancies you will face within a given period. For instance, if you buy an investment property near a university, it is obvious that most tenants will be university scholars. This means that you will be faced with fresh vacancies regularly, especially during summer.
If you invest in property that is located in the countryside or outside the city suburbs, you can be sure that you will attract tenants that are family-oriented and you will not have to worry about regular vacancies.
2. Crime Rates
Carry out a thorough research on the crime rate in the area that you intend to buy property. A neighborhood with high crime rates is not the best place to buy an investment property.
You could buy property in an area that is close to a police post or a neighborhood that gets police patrols on a regular basis. Look for information on vandalism rates, recent development or lack of it thereof, serious and petty crimes.
3. Property Taxes
Property taxes vary from one location to another and if you are looking for a good property to invest in, you should determine how much you will pay in terms of taxes.
Contrary to popular belief, high property taxes should not necessarily spell doom. This depends on the location of the property that you intend to invest in. If the property in question is in an ideal neighborhood, then you have no reason to worry. Usually, the local assessment office will gladly file all the necessary tax information.
4. Schools and jobs
Buy your investment in a school district area and a location that has been growing job development and opportunities. Speaking of a school district area, buy your investment in an area that only has schools with good reputation. This will earn your property more marks in terms of value. The same case applies for an area with high employment rates. Check with the Bureau of Labor Statistics to determine a neighborhood with high employment rates.
5. Amenities
A good property to invest in should have the right amenities in place. Be keen to check amenities such as movie theatres, malls, grocery stores, restaurants, projected parks, bus stops, gyms and other beneficial amenities that may add value to your investment property.
While you might want to engage a real estate agent when hunting for a good investment property, you should try to be as “hands-on” as possible. Agents put one under unnecessary pressure and you might be forced to settle on an investment property that does not really meet your needs.
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