Investment properties are one of the biggest assets you can purchase. With that being said, it’s crucial to find the right one that will maximise your return. The best way to find that amazing investment, is to think like a tenant. The main aim is to find a property that will attract fantastic tenants, who would consider paying that little bit extra. The following are some areas to consider that could make the difference.
The Right Area
So many people look for the house before the location when buying investments, however, that’s the wrong way around. It’s better to do some research and find out the areas that tenants are attracted to. These may be areas that are close to the city, or have plenty of public transport options. Talk to agents and get feedback about the area, and generally how many potential tenants they are getting to come through their opens before finding the right one. Once you find an area that is popular for tenants, find the best home you can afford.
Back to Basics
A lot of the time, tenants don’t want something over-the-top or fully made over, they just want fantastic basics. This includes an easy and functional floor plan, plenty of natural light, good orientation; ultimately something that is clean and functional. Paying extra for a fantastic bathroom that doesn’t make sense in the floor plan will ultimately end up costing you more, rather than maximising your return.
Ditch the Fad Features
Sure, fancy features may seem nice on paper, but at the end of the day, tenants rarely will spend extra for them. Once again, tenants want fantastic and functional basics, rather than splurging on luxuries. So yes, maybe the house with the rooftop garden isn’t the best choice for an investment property.
Invest in ‘Context’
Depending on the location of your investment property, it may be worth investing in ‘context items’. For example, in Victoria, it can get bitterly cold in winter, and sweltering hot in summer; so, tenants will be looking for good central heating and cooling. Having these things could be the difference between a good and average tenant, or having no tenant at all.
Stay Close to What Matters
According to research that Westpac recently conducted, tenants find being in close proximity to good schools and universities incredibly important. Finding a property in your chosen area that is relatively close to good schools and universities, and public transport, will definitely pay off in the long run.
It’s Not Your Home
Obviously this will be your investment property, however, it won’t be your home. What this means is that you may be buying something that’s not necessarily your personal taste, but is something that is easy to maintain and will be attractive to tenants. Sometimes, maximising your return means putting your personal tastes aside.
About Aurora Estate Agents
Aurora Estate Agents are a new breed of real estate professionals which are highly focused on their core values: integrity, accountability, transparency, client focussed and process driven. Aurora Estate Agents’ dynamic team is a collaboration of effective marketers, residential sales agents and residential leasing consultants.
South East Melbourne, which includes Berwick, Narre Warren, Beaconsfield, Clyde North, and Cranbourne is the country’s property boom hotspot. Aurora Estate Agents is perfectly positioned with a broad spectrum of property expertise to provide the best advice and skills for homeowners, investors and developers to ensure they continue to maximise growth and take advantage of existing market conditions.