If you are looking to buy a property as an investment there are several things that you need to take into account. It’s a very different proposition to buying a property you are going to live in. You have to think about all aspects of the property weighed up against the fact that you need to make a profit from the purchase, whether this be from a buy to sell or a buy to rent point of view.
We are going to take a look at some of the things you need to take into consideration if you are thinking of buying property as an investment. Remember that this is not about buying a property that you want to live in; it’s about the facts around what is going to secure you the best returns.
The age of the property
One of the things you need to think about is the age of the property you are thinking of investing in. Generally, you can expect to have higher maintenance costs if you buy an older property. Of course, you also need to consider that older properties are sometimes sturdier than new builds. The condition of the property and the quality of the build are often just as important as its age.
The condition of the property
We have just mentioned that the condition of an investment property is important and this is a vital consideration when you are thinking of making a purchase. You need to look at aspects such as plumbing and electrical work as well as the condition of the kitchen furnishings and the bathroom fixtures.
You may also want to consider whether the property has any additional features, such as air conditioning or exterior cladding such as that fitted by Peter Bracey. Features such as these can make a property attractive to potential buyers or rental clients.
The area in which the property is located
It’s not just the property itself that you need to think about when you are considering an investment. You also need to do some research about the area in which it is located. You need to find out about things such as the crime rate, schools and amenities.
It stands to reason that if there is a high crime rate in the area people may be reluctant to rent or buy there. People are also going to want good access to shops and social opportunities. If there is a lack of good schools in the area you may struggle to secure the interest of families.
All of these aspects are important when you are looking for a potential investment property. You need to make sure that you do all of the required research before you sign any contracts. Remember, that your aim is to secure a decent profit against the purchase price whether that is by getting a good resale price or by ensuring a good rental income.