Buying an apartment as an investment property can be a fantastic way to put you on the road to a secure financial future. But being able to pick the one with the most potential can be tricky. These three key tips are a great starting point to get a feel for what constitutes a good investment property.
1. Consider the apartment structure, location and aesthetics
For an apartment to work as an investment, it needs to be regularly tenanted. And in this case, looks really do matter. Look for an apartment that is not only structurally-sound, but one that has a good floorplan and some natural light. Adequate sound proofing is paramount, as is location. Is it near amenities such as, transport, shops, schools, sporting facilities or entertainment options? Which of these is most important to your renters? If you’re not sure, the next tip will help.
2. Renter demographics
It pays to do some research about the suburb and surrounding area in terms of renter statistics. Knowing who is likely to rent will give you an accurate idea of what you may be able to charge. This ultimately affects the price you’re willing to pay to purchase the property. Connecting with local real estate agents to tap into their expert knowledge can be very helpful here. Be sure to ask them about going rental rates for the area too.
3. Suburb growth
While location is extremely important to your renters, it’s also vital to consider for your long-term investment goals. Is the suburb in a growth area? Is there new infrastructure on the horizon? What have the prices and population growth been like in the last few years? What about future forecasts?
Researching, collating and reviewing this information will help you understand the suburb’s potential, and determine if it’s a good investment option.