6 Tell tale signs you’ve found the right investment property

Maximise your rental return - Find the right investment property

6 Tell tale signs you’ve found the right investment property

With hundreds of properties available, how do you find the right investment property to suit your financial goals? This quick guide will ensure you make a sound decision.

How to know it’s the right investment property

There are several signs to look out for when choosing a house, apartment or townhouse:

 

1. Clean and well maintained

It’s crucial to choose a safe and liveable property tenants can enjoy. We’re talking about thoroughly examining the property to get an idea of just how clean it is and how well it has been kept. Before making an offer, hire a qualified property inspector to do an exhaustive inspection. This also applies to apartments.

 

2. Low maintenance

Although many tenants look for backyards, not many want to spend their weekends mowing and weeding. So opt for a low-maintenance garden that looks after itself. As for the building, the older it is, the more electrical and plumbing repairs it would need. Also, bricks are easier to maintain than wood, especially if you’re buying along the coast or in woodlands.

 

3. Modern kitchen and bathroom

The condition and size of the kitchen and bathrooms are the biggest drawcards. A good kitchen has the vital components that can withstand frequent use: modern appliances, hard flooring, washable walls, functional countertops and lots of storage. A good bathroom has a window, exhaust fan, large shower and a two-door vanity unit. Remember, young families need bathtubs.

 

4. Close to amenities

The quality of the neighbourhood influences the quality of tenants you attract. Properties closer to the CBD, shops, schools, public transport, and medical centres are always in high demand. If they’re also close to a cinema, café strip and the beach, they attract tenants who won’t mind paying premium rent and who can afford annual rent increases. However, if you prefer to buy in a new area, check that the council has plans to establish any missing amenities.

 

5. Adequate heating and cooling

A lack of heating and cooling can be a deal breaker for many tenants. If you find the perfect property but it lacks a reversible air conditioning system, find out whether it’s possible to install one. Many tenants would prefer a nice and cool home over a double garage. Plus, by installing a heating and cooling system, you could increase the rent!

 

6. Pet friendly

Investing in a pet-friendly property can improve how quickly you can find tenants. The Animal Medicines Australia reports that nearly 5 million Australian households own pets. Now, consider the fact that around one quarter of all households rent privately (according to the Australian Bureau of Statistics), then if you want a competitive advantage over other investors you should consider a pet-friendly property. When allowing tenants to keep their furry friends inside, look for a property with pet doors or flaps, and floors that are easier to clean than carpet. Also ensure the fencing is in good shape to keep the outdoor pets safe.

 

Whether you’re shopping for your first or next investment property, My Place Real Estate can help. Give us a call on 1300 768 218 or (08) 9524 2288. Our team would be happy to chat with you over the phone or meet with you to help find the right investment property and tenants for you.

References:

Pet Ownership in Australia 2013 Summary

Housing Occupancy and Costs 2013-14