Investing in a property is a definite money maker. But the secret behind making the money involves understanding the value of a property. There are many properties available and accessible to us all in the real estate market today, but not every property or land on the market has a durable value that could increase over a period of time.
To determine the value of a property there are a variety of features an investment property carries. Here are some of the main characteristics you need to consider before deciding to invest in a property:
1. The Neighbourhood
The number one rule of real estate is location, location, location! The surroundings and reputation of a neighbourhood could significantly amp up the value of a property. For instance, a property in St. Kilda beach will hold more value than a property in the hidden Melbourne Suburbs of Burwood. In addition, the area you choose to buy a property in will determine the type of tenants you receive.
For instance, if you choose South Melbourne luxury suburbs, chances are you will attract a few lawyers, doctors and higher income earners. On the other hand, if you are buying a property nearby a university, you will definitely have a large number of university students as tenants, which could prove detrimental during summer and winter breaks.
Moreover, the Sunshine Coast has always been known for high end beach properties, and competitive real estate. Be on the lookout for a finance broker Gold Coast is well-reputed for its brokerages. You may be able to find the fiscal help you need to make a smart investment.
Property taxes could make or break your investment. Extensive property taxes are not always a negative, because quality neighbourhoods attract long-term tenants. There are unattractive areas which could include high tax rates and are definitely not worth investing in. Always be ready with a tax information file & discover possible property tax increases in the future in order for you to know if a property is worth the money in the long run.
3. Level of Crime
Majority of potential tenants would shy away from any neighbourhoods with a bad reputation involving high criminal activity. No one wants to live in an area that is known as a hub for criminals. Property prices are sure to drop if crime is an issue in the area. Research the frequency of crimes in the neighbourhood you are looking to invest in, lower crime rates mean higher investment returns.
4. Employment Market
Locations with a plethora of job opportunities are sure to attract more tenants. Do your research and see which major corporations and organizations are moving to and make an investment within that area fast! The employees of the companies are sure to be looking for a closer to place to live in due to the convenience factor. Make sure companies are high end and well-known if you want to attract affluent workers to your property and keep your housing prices high. Do your research, complete your visits and invest in the property with the right amount of value.