Do You Know What Makes a Good Investment Property?

Investing in property is much different from home buying. It is all about the numbers and has nothing to do with emotions. Choosing a good property means you have to think logically and long-term, with perspectives of future developments in the area or location of choice.

Here are some hints to help you determine if you are choosing a property that makes for a good investment:

1. The property caters to an existing market. When there is no need to create demand for a property, because there is one place, this is a good sign. An academic community with a nearby university or colleges is good for acquiring investments such as units or apartments suitable for students or faculty staff. There is already a demographic profile of people that you can take advantage of when deciding on which properties to buy.
2. A good property to invest in is one that is set to be “up and coming” – meaning it promises to be a booming metropolis or progressive place in the future. This way, you can acquire properties at a cheaper price, while benefiting from it in the future. Increases in the property or rental price along with the continuous development of the place make a great opportunity. You can ask the help of your reliable buyers agent for this. This is probably the key when buying at a good price, but is also the trickiest, especially if the area hasn't started the gentrification process.
3. Think about your target tenants. If you wish your property to maximize profits, it has to be tenant-friendly. Look for a place where people will find roads to the metropolis or city accessible. Proximity to commercial establishments, schools, and health care should also be considered. A 50km to 100km radius within the metropolis is good indication of a worthwhile property investment.

In these changing economic times, good property investment is needed than ever. Take a careful look at properties that are promising enough to bring you much dough. Seeking the help of experienced property manager with a proven track record is essential.