Signs That You're In For A Good Property Investment
There’s a lot that goes into worthwhile property investment. A big part of it is down to the role that you play, whether it’s the investments you make to improve that property or the management that you do to ensure that you find the right people to rent or buy it. However, a big part of your investment’s fate is going to be sealed when you choose which property you’re putting your money into. Here, we’re going to look at some factors that can make for a good investment.
Nearby properties are going up in value
If you want a sure indicator that you’re getting a property that’s likely to appreciate well in value, you should look at the records for recent purchases in the area. The closer you can get to properties that are like your own, in terms of space available and positioning to specific benefits and amenities, the more accurate a reflection that rise in value is likely to be. Of course, if that rise in value applies to all recently sold properties in the area, across the board, that’s even better. If you can narrow down why, exactly, property values are rising in the area, this can help you even further. So, let’s look at some things that might drive up property values, too.
The rental yields are good
Of course, you might not be looking to sell. You may instead want to earn your money through rental yields, which means looking for properties that are best designed to appeal to those who are likely to be renting. One of the best things you can look for if you’re renting out is a growing job market in the area. More people are renting than ever, but the vast majority of renters are young professionals who want to be close to their job but don’t yet have the capital to buy their own properties. Of course, there’s a lot that you can do to make your rental a lot more appealing, too.
COPYRIGHT_WI: Published on https://washingtonindependent.com/signs-that-you-are-in-for-a-good-property-investment/ by Alberto Thompson on 2022-12-27T11:32:15.696Z
It’s in a hot location
By hot, we don’t mean that the area is physically hot (though sunny locations can certainly make for very attractive ones.) If an area is starting to get a lot more popular and if there are a lot more new properties on the market, as you can find in an online property portal, then it’s a good sign that investors have already shown a lot of interest in it. You should find out why this is, such as whether a new vacation rental hotspot has been discovered, or a particular city or town is seeing a lot of commercial or retail development, attracting money, workers, and those looking to indulge in it. An up-and-coming location is one of the best things you can rely on when choosing a place to invest.
You’re able to get a good mortgage for it
Of course, it’s not just the property itself that can determine the profitability of your investment. How much you’re able to get for it matters, as well. To that end, you should make sure that you take your time to look through the mortgage lenders available to you. Aside from sharpening up your credit and getting as much of a downpayment available as possible, you should take the time to see if there are any local mortgagers who are willing to offer better loans to those investing in the local area or any other types of loans that offer specific advantages in your circumstances.
The property taxes
When you’re thinking about the profitability of any given area, you have to think beyond the mortgage as well. You need to think about the property taxes you’re going to have to pay for the purchase. These can vary widely even within a relatively small area, so you should pay close attention to the specifics of where you’re buying your property. High property taxes aren’t always a net negative, as you might be able to get a home in an area where rental yields are high enough to more than cover them. Visit the assessment office in your area to get a better idea of property taxes for every area, as well as whether any future tax rises are on the cards. You can’t predict the future, but you can, at least, see what they have currently scheduled.
The inspection results are good
Regardless of who is selling you the property or how you feel about it, you should make sure that you always invest in a property inspection. Even if the home already looks and feels perfect for you, you don’t want to end up buying a money pit with hidden issues a lot more expensive than you were expecting to take on. Hire a property inspection professional to go through it and give you the low-down on the property’s condition. You should simply consider it a cost of doing business, not a flexible cost that you can afford to wave off.
It doesn’t need a lot of work
This is something that the property inspector can help you work out but you should always consider how much you’re going to need to invest into the home to bring it up to the standards you need to appeal to renters or other buyers. You should take the time to get an idea of exactly how much work it will take and make estimates of how much all of this is likely to cost you. If a property has no fixes to be made, whatsoever, then not only are you very lucky, but you should look at it as an opportunity to think about what improvements and upgrades you can make with the money that is freed up as a result. Always budget a little to the side for repairs and improvements.
Sometimes, getting a good feeling about a property investment can be more misleading than you would like. Make sure that you can specifically nail down what about your property might make it a winner. Hopefully, the points above help with that.