Four Important Features Of Investment Properties
You can earn revenue from investment properties in two ways: the first is by selling them after allowing their value to increase over a certain period of time and the second is by leasing them to tenants who want to live in the area.
However, whether you plan on selling properties for a profit later or simply renting them out, the factors that can affect investment property values are still the same.
A real estate company specialising in international properties, shares four important house features that can greatly influence the success of your investment: Location and type of neighbourhood - These factors are the most important because they will determine what kind of tenants will be occupying your investment property.
For instance, if you buy a house or apartment in a college neighbourhood, your tenants will be comprised mostly of students (and a few teachers or school personnel, perhaps).
While students generally pay rent on time, this setup also means that there will be periods when you will not earn revenue, such as during summer vacations.
On the other hand, buying a home to let in a family-oriented neighbourhood may mean more stable earnings for the years to come.
Property taxes - As an investor, some of your greatest concerns include expenses that can reduce revenue from your property.
Besides occasional expenses on repairs and renovation, taxes can also take a big chunk of your rent earnings on a regular basis.
One way to get information on property taxes is to talk to homeowners in the area.
If you can't get information from these persons, you can also consult the local assessment office for more details.
Nearby amenities and schools - Besides location and type of neighbourhood, amenities available in the area will also help dictate the kind of tenants that you have.
Places that are near busy job districts and entertainment centres are more likely to attract young professionals, while those that are near good quality schools, parks or markets will be more appealing to families.
Schools are an especially attractive feature, as they can attract families who want to settle in the area for the long term.
Crime and safety - Areas with a low crime rate are bound to gain good reputations - which can also help boost property values.
In addition to making your investment more profitable, safety ensures that your tenants will be staying in the property for longer periods of time.
This means that you will receive a regular income and that you won't have to look for new tenants frequently.
However, whether you plan on selling properties for a profit later or simply renting them out, the factors that can affect investment property values are still the same.
A real estate company specialising in international properties, shares four important house features that can greatly influence the success of your investment: Location and type of neighbourhood - These factors are the most important because they will determine what kind of tenants will be occupying your investment property.
For instance, if you buy a house or apartment in a college neighbourhood, your tenants will be comprised mostly of students (and a few teachers or school personnel, perhaps).
While students generally pay rent on time, this setup also means that there will be periods when you will not earn revenue, such as during summer vacations.
On the other hand, buying a home to let in a family-oriented neighbourhood may mean more stable earnings for the years to come.
Property taxes - As an investor, some of your greatest concerns include expenses that can reduce revenue from your property.
Besides occasional expenses on repairs and renovation, taxes can also take a big chunk of your rent earnings on a regular basis.
One way to get information on property taxes is to talk to homeowners in the area.
If you can't get information from these persons, you can also consult the local assessment office for more details.
Nearby amenities and schools - Besides location and type of neighbourhood, amenities available in the area will also help dictate the kind of tenants that you have.
Places that are near busy job districts and entertainment centres are more likely to attract young professionals, while those that are near good quality schools, parks or markets will be more appealing to families.
Schools are an especially attractive feature, as they can attract families who want to settle in the area for the long term.
Crime and safety - Areas with a low crime rate are bound to gain good reputations - which can also help boost property values.
In addition to making your investment more profitable, safety ensures that your tenants will be staying in the property for longer periods of time.
This means that you will receive a regular income and that you won't have to look for new tenants frequently.
