Buying an investment property is exciting and can reap many rewards in the long run. The benefits of being an investment property owner, however, are dependent on your property doing well in the property market and being appealing to a range of potential tenants.
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To help maximise the outcome of your investment property, it’s important to be aware of a suburb’s appeal and make sure that it is located in an area of high demand with good rental yields. Moreover, being conscious of the neighbourhood features that add value to a property, can also help ensure the success of your investment.
Wondering where to buy an investment property? Here are 7 suburban features that you should be mindful of in your property hunt:
Location is crucial when it comes to choosing an investment property. Buying in a location that is popular and gentrifying will ensure the success of your investment, as it means that your property will always have people wanting to become tenants. In particular, inner-city suburbs close to the CBD tend to be a safe choice for investing as many people want to rent close to where they work, and to have easy access to the amenities that the city has to offer. Moreover, being close to beaches and parks can also add value to your investment property as these are features that many tenants look for when considering where to live.
Investing in a property in an easily walkable area can add significant value and boost the outcome of your investment. Potential tenants look for properties where they have easy access to simple amenities such as shops, parks, cafes, restaurants and schools as it means that having their own vehicle isn’t essential. In particular with properties in and around the CBD where car spaces are limited and many people take public transport to work, being able to walk around the corner to do the grocery shop, or grab a coffee on the way to work is very appealing.
Proximity to amenities such as public pools, parks, gyms, picnic areas, bike trails, dog parks, walking tracks, shops, restaurants, cafes and public transport, will always add value to your investment property. People looking for a property to rent are interested in what the suburb will offer them and so the more useful the amenities, the more desirable your investment property will be.
Investing in a property that is located close to schools, especially high-performing public schools, is a safe move. Property market studies have shown that properties in areas where there are good schools tend to grow in value over time. Schools not only make the property attractive to renters, but also offers you security as the investor. If you sell, you are likely to get a price that is equal to or more than what you originally paid for it.
Properties in an area with good access to public transport are highly desirable amongst renters and are a neighbourhood feature that can greatly boost the outcome of your investment property. Many people take public transport to work or simply do not own a car and so being able to access it easily is necessary for them to travel. It’s also a good idea to invest in areas with public transport expansion plans. If you buy early, your property value should increase quickly once the transport is in place.
Low crime rate
It should come as no surprise that people who are looking to rent a property consider the safety of the neighbourhood before deciding. As an investor it’s integral that you consider the suburb’s crime rate. People don’t want to live in an area where they feel unsafe. The lower the crime rate, the better the rental yields.
Attractiveness of the landscaping and architecture
Whilst looks aren’t everything, the general attractiveness of a neighbourhood’s landscaping and architecture can add value to your investment property. Simple things like choosing an investment property in an area with tree lined streets, flower decorated median strips, many aesthetically appealing properties and buildings as well as clean and well-lit footpaths, can greatly boost the value of your property and make it more successful amongst renters.
Investing in property has the potential to reap considerable rewards, but in order to ensure your property’s success it’s important to consider the neighbourhood features that can add or decrease the value of a property before deciding on one.