One of the most secure and rewarding forms of investments are property investments. In addition to being a steady and reliable source of income (in form of rent), they also lead to asset appreciation over the course of time. Nevertheless, in order to guarantee a profitable investment that yields long-term returns, there are some features that every investment property buyer should look out for.
Listed below are some of the features to consider when investing in property:
- Location: Choose a location that not only works for you in terms of viability and profitability, but is likely to attract good tenants. For your property investment to be a success, it is important for it to cater to the needs of a wide group of tenants. So choose a location which offers a peaceful neighborhood and easy access to transportation, schools, hospitals, job hub, entertainment centers, etc.
- Growth Potential: Consider the growth potential of the area you are planning to invest in by assessing its local economy in terms of planned improvements, infrastructure, educational facilities, local businesses and more. Investing in an area with high growth potential increases the prospects of a profitable venture and high quality tenants.
- Durability: As there is no fixed maturity for property investments, the property you invest in should be durable enough to generate income for many years. Always opt for a property with negligible issues, if any. These properties are easier and faster to repair as opposed to those with larger issues that take much longer to resolve, add to your costs and reduce the property’s appeal.
- Price: How much can you afford to spend on the investment? Formulate a budget and take into account the property’s purchase price, your spending capacity and the property’s intrinsic/true value. When it comes to real estate, it is not about how much you can afford to spend as much as it is about spending on property that will generate profits. So, a potential buyer should compare the purchase price of the property to its intrinsic/true value and opt for one that has a lower purchase price and higher intrinsic value in order to generate returns.
- Maintenance: For a property to generate high yields, it is important to evaluate additional costs (maintenance costs) of keeping it in great condition for existing and potential tenants. So, when buying property, choose one that will require minimal maintenance e.g. one with fewer complex systems and appliances that require constant maintenance.
- Market Trends VS Long-Term Appeal: Even though it is tempting to follow market trends and buy property with the latest building designs, you should focus on the long-term appeal of an investment instead.
Lone Star Realty & Property Management, Inc. assists its clients in investing in quality properties for earning higher ROI. The agency enlists suitable investment properties on its website. For more details on features of a good property investment, visit 1020 West Jasper Drive, Killeen, TX – 76542, or call at (254) 699 – 7003.