Great Location: Many buyers once they begin their home search, get carried away by their emotion. They will fall in love with a house despite the home lacking certain features which were important to them in the beginning, and despite the location they were targeting. However, one thing remains true; you can change the home’s colours, you can put in new flooring, and you can even change the layout of the home, but you can never change the home’s location. It is no insider secret, beautiful homes located in remote places, or in less attractive sections of the city will be cheaper than similar homes located in attractive neighbourhoods. Therefore, as a buyer who I constrained by a budget you need to make a choice to you buy an uglier, perhaps smaller home in a prime location or do you buy a villa for the same amount of money in a region most detest. If you are looking to make a profit, choose a good location. You want to choose a neighbourhood with great schools and amenities, easy connection to public transit, and low traffic areas.
Average Rent and Vacancy rate: When you are choosing a neighbourhood, you should look at the neighbourhood’s average rent and vacancy rate statistics. Next, you should do the math, if you can’t cover your costs by charging the average neighbourhood rent then the home in mind is a poor investment. Also look at vacancy rate, many vacancies in the neighbourhood is a sign that something is not quite right; the neighbourhood could be attracting seasonal renter or the neighbourhood is becoming less attractive over the years. A neighbourhood with a low vacancy rate will allow you to charge more for rent and it means you are more likely to find renters.
The Right Floor Plan: As stated above you can change the floor plan, but unlike everything else in the home, the floor plan is the most difficult and the most costly to rearrange. Brows the net, magazines, and local newspapers and see what type of floor plans are in high demand, and which are the most popular features.
If you are looking for more investment advice and would like a personal consultation about where you stand in terms of investment properties then give us a call, we will be happy to help.