As you find a new property, you may feel overwhelmed by the sales process. Let us simplify it for you and encourage you to focus on these features when assessing whether a property is worth your investment
Amenities
Do not underestimate the amenities that come with your property: in-home and in the neighborhood. Consider local public transportation and stores.
Listings and Vacancies
Check how many vacancies are in the area. If there’s a high number, you may want to avoid the area. If this is the case, do research on why the vacancy rate is so high.
Future Developments
Check with the local council to see if anything is in the works. This could affect the property’s ability to be sold. Factories could make your property unattractive while a small shopping mall could attract clients.
Crime
Check the crime rate. Your clients want to feel safe in their new neighborhood.
Schools
If the property has great schools in their area, this can be a great selling point for young couples or families.
Jobs
Is unemployment rate high or low? Also, if a major employer is in the area, that can lower the vacancy rate
Natural Disasters
Research what natural disasters are most likely to occur in the property’s area. You can also find out how much money you will need to invest in insurance premiums.
Rent
When you calculate rate, take into account rising interest rates and other unforeseen factors. Rent could increase within five years of move-in.
Property Taxes
Property taxes vary based on characteristics of the property. Tax needs to be calculated when determining income. Remember that you also need to pay capital gains tax when selling the property.
Neighborhoods
Always assess the neighborhood as a whole before deciding to invest in a property. Different neighborhoods will attract different people. If you live near a university, you will definitely attract students (who might also leave during the summer, so think about this). Consider the local environment and how that will play into your income and investment.
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