In recent years I’ve observed that when people look into new suburbs or locations in search of potential areas for real estate investment The majority of individuals are not aware of the best concerns to inquire about when looking to take an educated choice.
Therefore, I’ve created this property investment checklist in order to help you and other investors in asking the most pertinent questions. It can assist you make a profit from your investment. I’ve also included helpful information for you to take a look at. These questions and details should aid you in seeking to come to an educated decision.
It is recommended to begin by asking yourself these questions:
Question # 1
Is the property you’re viewing close to the an existing as well as planned infrastructure?
Tenants are more likely to be attracted to the rental property investment if they understand the infrastructure is already in place or it is developed.
Question #2
What options for transportation are accessible to your tenants?
You’ll need to determine what transportation options are offered to your tenants, for example:
Train lines;
Major arterial roads;
Road networks;
Access to the freeway
Footpaths; and
Cycle paths.
Question #3
What are the number of rental properties in the area?
You must look into areas and suburbs in which there is a huge interest in rental property. It’s important as it provides the opportunity to make money as well as reduce the risk of your investment property being empty for any period of time.
Question #4
What are the prices for property in the region?
It is important to look at areas and suburbs where it is evident that there has been a a constant and steady growth in property values and avoid regions that have been hit by dropping prices that have been soaring.
Question #5
What are the advantages of purchasing a brand new or well-known investment property?
It is essential to weigh the advantages of buying an investment property that is new against an investment property that is already in place (i.e. since new property may provide substantial tax benefits and benefits).
Question #6
What is the population breakdown in the region?
Your investment property needs to be situated in an area which is welcoming to tenants, and also has the best chance of reselling. When you are contemplating a new location or suburb you must investigate:
The amount of owner-occupier households in the region;
The number of investors who are in the area
If there is evidence of housing for the public in the vicinity If there is evidence of public housing in the area
The overall design of the suburb and its surrounding suburbs.
Question #7
How do you rate your investment property with the market averages of similar properties in the same area?
It’s always recommended to look at the value of your property with similar properties in the same area to ensure that the investment property you are considering is priced correctly.
Question #8
Are you investing in an the right area to be attractive to families?
Because families are believed as stable tenants it is recommended to consider areas or suburbs which are appealing and well-suited for families.
Question #9
What is the amount of land available in the region?
You might want to look at:
Land purchase in a new land estate in which there is a steady quantity of land available, since this can be a good indicator of growth to come; or
purchasing land in a reputable popular suburb or area. It might prove to an investment that is worthwhile, due to the fact that a declining quantity of land can boost the worth of your investment property.
Question #10
Have you thought about the potential increase in capital value and the rental yield for your rental property?
If you are evaluating the investment property, ensure that the property is sturdy in of the areas below:
Potential for capital growth
The possibility of a large rental yield.
Selecting an investment property that meets your needs is an important financial choice. Don’t jump into something too fast. Be sure to keep this in mind when you’re searching for the right investment property, you should do your homework.
Seek Expert and Professional Advice
A checklist of property investment options can assist you in making an informed choice. It is possible to seek the help from a professional financial broker. They will help you develop a customized property investment checklist to aid you to make a successful investment.
Finance Me is a reputed Australian financial brokerage firm. The team of experienced finance brokers can assist clients obtain loans for investment properties.
