3 Jun 2014
When it comes to choosing a home to live in we all have our own wish list – a double vanity ensuite, pool, entertainment area, modern kitchen, large shed, lock-up garage, and the list goes on… However, when you’re choosing an investment property it’s a little different. An investment property is bought for one purpose, to generate an income and appreciate over time. Rather than finding your dream home, you need to find a property that will give you a profitable return. Sounds easy enough, right? You’d be surprised by the number of people who go into investment properties with the wrong attitude, so we thought we’d share a few tips on how to get it right.
- Look in the price bracket most people will be able to afford – to rent, and buy. Consider the fact that most tenants want to pay less each month for a rental home than they would for a mortgage. Buying a home in the top price bracket of your chosen area may unnecessarily narrow your market. Similarly, if you do decide to sell the property while paying off a second mortgage, it’s unlikely that you’ll want the property vacant for a minute longer than it needs to be. By choosing an investment property that’s not stretching your budget, you’re more likely to choose a property within the budget of others, and therefore not excluding buyers based on affordability.
- Look in an area you’d like to live in. While tenants may not want to spend a fortune on their rental property, they will most likely want to live in the same area as you. Most people want to be closer to schools, public transport and shops, so buying nearer to facilities will help maintain the value of your home in a down market, and help its value to grow in a hot market.
- Once you’ve bought a home that doesn’t break the budget, but that’s in a good spot, you can go one step further by adding instant value – giving yourself a quick buffer of equity. Small repairs, a coat of paint, the removal of dated fixtures, and a freshening up of the exterior will add instant value to your new investment property.
If you’d like more advice about choosing the right property to add to your portfolio, or would like to know suitable properties for sale from Padstow to Picnic Point, please contact our friendly team at Chambers Fleming Professionals Real Estate, Padstow.