We’ve all thought about it. Splurging on stocks, devoting your savings to buy a property, or even building a bond. The idea of earning money over time, without putting in the work, is music to many’s ears. But what’s the best way to turn it into your reality?
Buying a house straight away can be unrealistic. And although you might think it’s a great way of getting some easy money, don’t underestimate the hassle that comes with owning a property. Starting off, you’ll have to find the best available property to invest in. But how to recognize which properties offer a high-return? The ones you would like to live in? The pretty ones? The ones in a good neighborhood?
In this article, we’re covering the top 3 aspects to look for when house hunting: Investment edition!
1: The neighborhood
No way of dodging the reality: a property owner needs tenants. And the amount of rent your tenants are willing to pay is directly related to your property's location. A spacious family home won’t get you the profits you’re looking for when it’s surrounded by student flats, and vice versa. Deciding on what kind of tenants you want to rent out to, certainly helps to pick and choose the fitting neighborhoods to scout within.
Other than that, keep an eye out for areas with low vacancy rates and good, fitting livability and amenities. It attracts the right tenants and raises your rental income!
2: The property condition
When it comes to the state of the property, a good condition always wins. Although, it will definitely show in the pricing. If you’re up for a big renovation, a low-cost property might provide a bigger return in the long run. But keep in mind that if you’re looking to rent out an older property, the general maintenance cost will add up. So, although the initial price might be a catch, make sure the foundation is in a good condition, and worth the price! Often, settling for a higher purchase price avoids loads of hassle in the long run.
3: Square feet to beat
As much as we’d all love to invest in the most beautiful properties, practicality beats looks when it comes to renting out a home. Think of renting out each bedroom separately, or having the luxury addition of a backyard in a big city. Generally, a bigger home is a great investment compared to a smaller home that looks nicer. Although, keep in mind the area and your target market for this one.
Conclusion
The stock market has been fragile lately, and building a bond is often an unrealistic goal for starting investors. When it comes to real estate, it’s probably the most stable market out there. Home prices are increasing by the day, and as much as we don’t like to see our rent go up, we love the sight of these new opportunities!
When it comes to investing in the right property, several aspects come into play. Although, the three factors mentioned above are certainly leading the herd. So, make sure to figure out your target market, hunt in the fitting neighborhoods, and choose practicality over beauty!
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