If you are a first time property investor, you may already know that you are in for a treat. Property investments usually turn a clean profit for investors who go far in ensuring that they are picking the right property. The key to property success is picking the perfect home. To help you determine which properties will turn you a good profit in the coming years, refer to these three crucial factors:
1. Area, Location – however you call it, it all boils down to the where the property is situated.
The location of the property you choose to buy is a critical determinant when talking about how long you can get good rental business from your investment home. In property, you can change how your home looks, but you can never change where your home is situated. So before you say yes to any property, make sure that you are buying in a good location.
If you’re unsure of the best locations to buy a property from, just think about this: Investment properties that turn in high cash flow tend to have something in common with each other. While there are special cases for trends, most high profit investment locations have close proximity to schools, parks, malls, and transportation stations. Crime rates are also low in these areas.
2. Check the marketability of the area. Find out the rental rate and vacancy rate.
If you want to ensure your rental success as a landlord, you need the average figures to your prospect location’s vacancy rate and rent price. You need a high enough rental price and a low enough vacancy rate. This is to ensure the survival of your rental business. If the average rental rate is too low, you may not be able to cover your costs. If there is a high vacancy rate, it may mean that the rental market is not booming, or perhaps it’s just seasonal. The ideal market is where there is a low vacancy rate, as this will allow you to not only get more renters, but also to charge higher.
3. Check the one other thing that you can’t easily rearrange – the floor plan of your prospect home.
It’s easy to change the walls and it’s easy to change the furniture, but what’s never easy is to rearrange the floor plan once you change your mind. So in order to ensure your property’s competitiveness on the market, you need to consider the floor plan before signing that purchase deal. Make sure that you choose a home with a modern floor plan, you’ll find it easier to find tenants in the future.-iLetproperties.co.uk