Property Features to Look Out For.
Are you considering ingesting in real estates?.... Here are a few factors to look out for before taking action.
The Property’s Neighborhood
The neighborhood will determine the quality of tenants and the rate of vacancies. If you invest in a rich neighborhood, your tenants will probably be rich and thus your rental income will be high.
If you buy a property near a university campus, then you are likely to attract students as tenants. The market capitalization of your property will also be determined by its location. Town properties cost more compared to rural ones.
Taxes
Property taxes have a way of eating into your rental income. Talk to the people living in that neighborhood and ask how much they are paying in taxes. Alternatively, you can go to the local authorities and enquirer.
Schools Nearby
If your chosen investment is residential real estate, you will need to confirm that there are good schools in the neighborhood. This is a great way to reduce vacancies in your property. Parents will find it harder to move if their kids are in a good close by school.
Crime Rate
Vandalism, burglary, shootings, and other crimes will make your property investment a hard sell. No one wants to run a business or host a family in such a neighborhood.
Employment Opportunities
Try investing in a residential property near an industrial town or a big city. Bus, railway systems and good public transport are also important. If there is lots of accessible jobs that is a huge factor for you.
Other Facilities
Are there malls, parks, theaters, public transport and other amenities nearby? If you invest in a property that is near all these facilities, it will be very hard not to get a return on investment.
Check with the Municipal Department
Apart from giving you building permits, the department will have all the information on upcoming developments in the area such as parks, condos, a highway etc. You will need to know whether it will be a growth area.
Vacancies in Surrounding Properties
You should never invest in a property whose neighborhood has hundreds of vacancies. You will be competing for tenants with other property owners. The effect of low vacancy is reduction on rent so as to attract tenants.
The Average Rent
In order to be able to repay your mortgage and handle other property expenses such as tax, you will need to be sure that the rental income in the neighborhood you want to invest in will be enough to cover all this and leave you with some profits.
Susceptibility to Natural Disasters
Note that your insurance premiums will be higher in an area prone to disasters such as hurricanes, flooding etc. All this will eat into your pocket.
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