18/09/2020
How to spot a property with possibilities
Category Advice
Thinking of investing in property? It's a golden time to make your move. More 100% home loans are getting approved. The prime lending rate is also at a record-low 7%, making it easier to pay off home loans. In difficult times, having an additional stream of wealth can only make your life easier. At De Lucia Group, we know pinpointing your property can be a challenge. So, here are the features your perfect match should have.
1. The property is in a great location
Buy where there is a strong demand for housing. These are within growth areas that have a thriving economy, well-maintained infrastructure, and are close to employment opportunities. It's why a place like Kempton Park is a sought-after residential node.
Do check if there are upcoming projects in the works that will improve the lives of residents. These can include schools, shopping centres, and colleges. You should also do your research and ensure the area has a healthy rental market. If there's a high vacancy rate, it could be a red flag that the area isn't desirable. It will also mean more competition, making it difficult to let out your property or get the rent you need to help pay off a loan.
2. The property is rich in features
The property, together with the location, needs to appeal to the renter you have in mind. Your property, for example, might be close to schools and playgrounds. But, if it doesn't have enough space for a young family, it would struggle to attract this type of renter.
As a general rule of thumb, there are common characteristics all renters appreciate. Ample parking space, rooms with built-in cupboards, and security are popular across the board. Also, look out for properties with curb appeal which will make it easier to market to potential renters.
3. The property is close to amenities
Consider the property from the eyes of a renter. Are there reputable schools in the area for their children? Are there shopping centres to grab those daily essentials? Are there colleges or universities close by? Quality amenities make a property more valuable and can help you charge a premium to renters. If the property is a sectional title, also consider common areas like clubhouses, gyms, and recreational spaces which can add convenience to a renter's lifestyle.
4. The property needs little work
With their lower cost, 'fixer-uppers' can be tempting for a first-time buyer. However, you could end up wasting a lot of time and money bringing it up to scratch. Scout out properties that are move-in ready and in good condition.
Beyond this, look for properties that will require little upkeep in the future. The maintenance of extensive gardens or custom fittings, for instance, can cut into your earnings.
5. The property has good neighbours
Neighbours that are noisy and messy can make it tough to let out your property. They can also make life difficult for tenants which could add stress to the letting process. It's a smart idea to pop over and get to know them.
Neighbours can also prove useful when evaluating an area. They can provide insight into the safety of the area. They can point out appealing neighbourhood features and amenities that you might have missed. Happy nearby residents can also give you peace of mind when making your investment.
6. The property's price is right
The property may not be a bargain. But, you should still aim to make an investment that meets your budget. Property has a lot of upfront and hidden costs from home loan payments, property taxes, transfer costs, insurance, and so on. If you find your future rental income can mitigate these costs and earn you a profit, the property is worth considering.
