What to look for in a good investment property
By Momentum Wealth|November 21, 2016
One of the major difficulties when looking for a property is that no two properties are ever exactly the same. Investors are constantly looking for the for to help in this area. So what elements can you look at to ensure you find a good investment property?
Every house in Australia is unique, whether it’s the layout, the number of bedrooms and bathrooms, the size of the land, the condition of the dwelling or the size of the backyard.
Even two identical houses on identical parcels of land that sit next to each other will differ as they will each have different neighbours and street views, whether it be power poles, council trees or even the opposite houses.
So what are some features that investors should keep an eye out for to help ensure they’re buying a better property?
While the above factors won’t always contribute to a property’s capital growth, it will make it much easier to find a tenant, which will deliver the cash flow required to service your loan.
Investors need to consider the items above in conjunction with the property’s location and type of property, which are the most important factors when buying an investment as these will determine the levels of capital growth recorded.
Every house in Australia is unique, whether it’s the layout, the number of bedrooms and bathrooms, the size of the land, the condition of the dwelling or the size of the backyard.
Even two identical houses on identical parcels of land that sit next to each other will differ as they will each have different neighbours and street views, whether it be power poles, council trees or even the opposite houses.
So what are some features that investors should keep an eye out for to help ensure they’re buying a better property?
A presentable kitchen
The kitchen does not necessarily need premium appliances and high-quality granite bench tops, but it should be clean, presentable and relatively modern to ensure it’s appealing to prospective tenants. Kitchens are one of the biggest deal makers or deal breakers for tenants and it could mean the difference between leasing the property immediately or taking weeks or months to find a tenant.Clean bathrooms
Similar to kitchens, bathrooms are a major drawcard for tenants. Ensuring they are clean and relatively modern will make leasing the property much easier.The right configuration for the suburb
Buying a property that suits the area, and the needs of the local demographic will make leasing easier. For example, most rentals in a particular suburb may feature two bathrooms, but if your investment property only features one bathroom, it’s likely to be a disadvantage when finding a tenant.Structurally sound
Before buying an investment property, make sure to complete adequate inspections, including pest, electrical and structural, to have peace of mind that the house is rentable and won’t require expensive restoration works.Air-conditioning
In warmer parts of the country, it’s essential to have at least a reverse cycle air-conditioner, or ideally a ducted system. While air-conditioning used to be considered a luxurious addition, it is now a standard inclusion in many parts of Australia.While the above factors won’t always contribute to a property’s capital growth, it will make it much easier to find a tenant, which will deliver the cash flow required to service your loan.
Investors need to consider the items above in conjunction with the property’s location and type of property, which are the most important factors when buying an investment as these will determine the levels of capital growth recorded.
