Avoid Emotion When Choosing Your Investment Property
Free Download: Property Investment Checklist
Avoid Emotion When Choosing Your Investment Property
Written by Darryl Simms & first published on Linkedin Pulse
It is important to put aside your personal emotions when researching what investment property to buy and using a Property Checklist is one tool that can help.
Rental Returns:
Your initial focus needs to be on identifying a property that will attract quality tenants and deliver the best possible rental returns for you. Achieving this requires education and research, rather than a quick emotional response to a recent "for sale" notice that you might have driven past or seen online.
Personal Needs:
Before racing out and buying the first investment property you see it is important to consider your personal risk profile, what your personal needs are in relation to income and how long you have until you plan to retire.
Search Phase:
Once you have ascertained what type of property best suits your current and future needs, you should then start looking at what is available. During this research phase it is important to stay focused on "the numbers", rather than what your emotions are telling you. It is also important to consider what types of properties will be most attractive to your ideal tenants.
Capital Growth:
After ascertaining the best area for potential capital growth, that also has a high demand for your ideal tenants, then you need to be looking at the finer points of the property.
Type Of Property:
The property should be new or relatively new (to maximize tax depreciation benefits) with a northerly aspect and lots of winter sunshine in main living areas as a minimum. Aim for generous sized bedrooms, modern appliances and higher than average ceilings to give a feeling of space.
Security:
The property should have excellent security as the bulk of decisions around suitable properties to rent are made by females and personal security is very important to them. If at all possible it is advisable to have secure off street parking, preferably with the provision to drive in, lock up from inside your car then enter the building from within your secure parking area.
Location:
Properties that are close to cafes, public transport, restaurants etc, yet are located one or two streets back from busy main roads are preferable and will command higher rent.
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Written by Darryl Simms & first published on Linkedin Pulse