What Makes a Good Investment Property?
Investing in property can be a great long-term investment, whether it’s for personal use or as a source of income. However, finding the right property investment in Melbourne that matches your financial goals is not easy. Given the wide range of options, choosing a property to invest in can be overwhelming.
So what makes a good investment property? Below are some essential factors to consider or look for when searching for a good investment property.
Location is one of the most important factors to consider when it comes to searching for property. The location plays a significant role in determining the overall value of the property. Properties in a great location are more likely to increase in value, while poor locations are less likely to provide growth and are more susceptible to market declines.
In addition to location, the local infrastructure should also be given careful consideration. There are obvious advantages to having a property in close proximity to work, schools, hospitals, shopping centres, parklands and recreational facilities. This benefits you as a landlord, and also your tenants which will maximise demand and therefore provide secure rental returns. Always consider the property from the perspective of a potential tenant.
Property values are based on the combined value of the land and the building. The building can often decrease in value as it deteriorates, whilst the land can increase in value due to its permanency. Land is something that will always remain and if it happens to be in a great location, its value will likely appreciate over time due to high demand and low supply. It is for this very reason that some investors purchase a property based solely on its land value and why many buyer’s agents will recommend purchasing a house, townhouse or villa as opposed to an apartment.
Transportation is another feature you need to look for. People must be able to travel from place to place with ease. Review the modes of transport available and the access to buses, trams, trains and highways. This factor can often influence an investors and tenants decision-making when selecting from different options.
Smart investors look for areas that are continuously developing. In this case, areas with a growing population and a number of other growth drivers that support the local economy are worth considering. A variety of different local industries means there are often varied employment opportunities. A property built in a location with several growth drivers has a greater chance of increasing in value in the future.
Due to the wide range of variables, it is a challenge for buyers to find and select the best property. The first step should be to gather as much information as you can. If you think you’re unable to go through the entire process on your own, get professional assistance. Licensed buyer’s advocates have the qualifications and experience to help you find the right property to invest in. To find out more or to ask any questions, feel free to get in touch with the Property Mavens team today on 03 9988 2266. Contact Us