Are you thinking about purchasing an investment property now or in the future? To ensure your investment opportunity goes as smoothly as possible when you decide the time is right to invest, it’s important to ask questions every step of the way. Here are some questions to ask before choosing an investment property.
What do You Want to Achieve Long-Term?
Property investment can be exciting and a good way to secure your future but it’s important to ask yourself what your long-term goals are before choosing a property. Do you want to buy a house you can let straight away? Do you want to invest in a property you can renovate before you let to increase your portfolio and future gains? Think about your time and financial constraints and make decisions based on these factors. There are so many property opportunities that it’s easy to become side-lined without a solid strategy in place.
Is Your Chosen Property in the Right Location?
It’s vital to think about the demographics of your next investment property as a way to get the most revenue from it as a long-term investment. Do potential tenants in your areas of consideration have a satisfactory income and the potential to pay more rent in the future? Is the property close to up-and-coming developments or sought after amenities such as shopping areas, public transport, schools and work opportunities?
Is the Property the Right Fit for Investment?
There are a number of characteristics of a good investment property including if it will appeal to renters based on its appearance, location, space, unique features, amount of land included and if it has the potential to be extended to add more value. Are there any risks associated with the property or any future issues you can foresee?
Our last piece of advice on purchasing a property for investment is to separate yourself emotionally from the property. Approach any considerations or transactions as a separate entity and view the purchase from the perspective of a business owner to avoid making emotional decisions which could affect your investment returns further down the line.
Has our blog helped you as you consider adding an investment property to your portfolio? If you need further help and advice, tailored to your situation, our experts would love to hear from you.