Here’s Your Checklist
Finding the right investment property can take time and require a bit of research, some good judgement and a plan. You can make the process faster by ensuring you understand exactly what you want. That is, what kind of property you’re looking for, where you want to look, what kind of cash flow works best for you and what your budget is.
If you don’t have any of these things thought out, there’s no hope of finding a good rental quickly. Maximise your chances of finding the right property fast by doing the following things.
Do Your Research
As an investor you need to consider what kind of property will suit a broad variety of tenants. You should also ensure you understand things like demand, price growth, population growth and planned developments in the local areas you’re looking at. The easiest way to stay on top of this is to search close to home or in areas that you are very familiar with.
Look for Features That Attract
There are some features that are simply must haves when it comes to reliably attracting a broad range of tenants. These include:
- Security – Everyone wants to feel safe, whether by having a quality home security system or by living on a quiet street with good lighting.
- Parking – Undercover and off street parking always adds value to a property and attracts more tenants.
- Location – Proximity to public transport, cafes, restaurants, schools, hospitals etc. is a huge factor when it comes to what makes a property appealing to tenants, how much rent you can charge and the overall value of the property itself.
- Storage – Tenants are willing to pay more rent for ample storage space if it means they don’t have to pay for off-site storage for their belongings.
- Low maintenance – While luxury gardens, pools and spas may attract some, for many others it’s simply too much work. Unless you’re willing to pay for it, avoid these difficult to maintain features.
Understand and Cater to Demographics
It’s also essential to understand what kind of people live in the area you are looking at as this will determine what property features will be in high demand. For example, an area with a lot of schools and parks with a high population of families will drive demand for properties with more bedrooms and a backyard. By investing in a property that caters to the needs of local demographics, you can charge higher rent and minimise vacancy periods as people will always be looking for that type of property.
Trust the Market
Finding the right investment property is all about using the local market as a guide. Speak to local property managers about what kind of properties are in demand locally. Ensure any potential properties are the right type for that area.
When you find an appropriate property, engage a specialist real estate agent who is an expert in their local market. They will be invaluable when it comes to helping you purchase the property and if you’d like, managing it as a rental property once you’ve purchased it.
Thinking about investing in property in the Geelong area? Speak to the team at Hayeswinckle today to see how we can help you manage your investment property portfolio.