You may prefer taking real estate agent’s help to carry out purchase process but begin searching on your own is wise. Having a realtor exerts pointless burden to buy even before you find a suitable property. Your approach should be unbiased with each property and neighbourhood when budget is concerned.
Apparently your investment range will be limited whether managing the property actively or hire an arbitrator. If self-administration is preferred, location mustn’t be far from where you reside at present but if hiring a management company, distance doesn’t matter much!
Special care is taken when off plan properties are concerned since investment would decide the final outcome as to what will be the final picture. Move carefully and you’ll surely grab a profitable off-plan rental!
Just like a person is known by the company he keeps, neighbourhood becomes an iconic representation of a property whether buy or rent. It influences both tenant types and how often you’re open to vacancies. For instance if investing in a district near public university, chances are that tenants will be students and you’ll probably face vacancies during vacations.
- Property taxes
There isn’t any specific paradigm for property taxes across the board. Being an investor, you should be aware of how much tax will be deducted from rental money. Higher taxes aren’t always bad but it’s a sign of an excellent neighbourhood with long-term tenancy expectations. Town municipal office probably has all the data on taxes or you can query homeowners within the community.
- Educational institute
Your tenants may or planning to have children so a decent school must be nearby. Upon finding the right place, check quality of the school and how it’ll affect investment value. In-case it has a poor reputation, cost is likely to affect property value. Though your primary concern is the cash flow, general value is considered while selling someday.
- Crime, violence & fear
Nobody, not even a criminal wishes to have their home at a place known for domestic violence and crime. Estate agents might force you to buy/rent a property just for minting money but visit police office or public library to determine crime statistics. Serious and petty crimes with vandalism rates are a few factors you should investigate with appropriate security measures to deal with the quandary. Take a highly developed region that’s ought to have outstanding security even with crime rate less than ten percent.
Areas with budding job opportunities attract more people which means more tenants. Visit labour bureau or local library to know employment statistics. If a new major company is moving in, expect more workers hence more tenants. Still, cost effect can either be positive or negative depending on corporation. If it’s a major shopping mall, expect traffic and noise inflow all day long; not ideal for “pin drop silence” lovers.
- Amenities at-hand
Vicinity having parks, health clubs, movie theatres, educational institutions, grocery stores and availability of public transport, renters would likely to flock head over heels. Cities and specific districts offer loads of promotional literature thus creating awareness of public amenities you can avail.
- Projected development & building permits
Investing in an area with lots of projects underway is a profitable venture especially if there’re multiple types of homes. We’re actually talking about initial investment, moving in until the construction has been completed isn’t preferred since dust and excess noise all day long is hazardous to health. Meanwhile, nearby development schemes raises market competition so move cautiously.
- Natural calamities
Excess natural disasters like flood, tornadoes, hail storms and others cause immense damage to the property. It requires insurance that’s another expense and is likely to eat most of rental income proportion. Although natural disasters can strike anytime, anywhere; ask locals about preventive measures to cut down expense.
Highlighted above are a few considerable aspects when buying/renting off-plan properties.