Things To Consider When Purchasing A Rental Property
Buying real estate to use as a rental property is a wonderful investment opportunity since it is almost always going to increase in value over time. It can also be a bit daunting for the first-time investor, because there are a lot of legalities involved, and some potential hazards to navigate. Even so, it is an exciting field that promises great returns for those who stick with it!
If you are thinking of investing in rental property you should start by getting some expert help from Fresh Start Advisory property advisors, they have years of knowledge and expertise in the real estate field and can get you up and running from a confident and well informed position!
Meanwhile, here are some of the important things you should take into consideration when you start looking at investment properties!
The Neighbourhood - Location is always key, so the neighbourhood you choose to buy in is going to be a factor when it comes to the types of tenants you will attract and your possible vacancy rate. If you buy property near a university the chances are high that it will be students who dominate your potential tenant pool. This might be great during the school year, but you might have a hard time filling vacancies over the summer.
The Schools - Speaking of students, if you are planning to deal with family-sized homes then it's incumbent on you to take the location and quality of the local schools into account. Although your main goal is establishing your monthly cash flow, bear in mind that the overall value of your rental property will be important if and when you eventually decide to sell, and that will include the state of the local schools.
Crime Levels - Nobody wants to live in an area that is a hot spot for criminal activity. Check with the local police and government for accurate crime statistics for the neighbourhoods you are considering making a purchase in. Don't forget to check the rates for vandalism and petty crimes as well with an eye to see if local criminal activity is on the rise or falling! You should also consult with neighbourhood denizens as to the frequency of police activity in the area.
Job Market - It's a sure bet that areas that have growing employment opportunities are going to attract more tenants. Workers searching for a place to live will be keenly interested in rentals if there are plans for a major company to open a location in the area. Beware though, the type of business may influence housing prices to rise or fall. Everyone loves living near a great supermarket, but a smelly factory? Not so much!
Amenities - Take a look around the neighbourhood you are considering investing in so you can see what kind of restaurants, parks, stores, gyms, movie theatres, sports fields, and public transportation links are available that are going to be attractive to renters. If there are plenty of fun and useful amenities in close proximity to the property it will be a major draw for your future tenants.
Owning a rental property is a wonderful investment in your future!
Business Daily Media
