10 Things to Consider When Buying Investment Property

By: Elizabeth McLachlan

Thinking of investing in a rental property? Buying investment property could be risky as there are quiet a few things to consider, but risk comes with most property purchases and can be overcome if you consider all factors. Here are ten crucial things to look out for when shopping for profitable rental property.





          Location
When purchasing a property with the idea to make a profit from rental income, you firstly need to consider the location. What this means is that the location of your property will to a large extend impact the speed at which you will rent out the property as well as the quality of your tenants.

         Rental History
If relevant, ask for a rental history of a property before you purchase. This will give you a good indication of how much rent you can charge as well as how often the property was occupied and how prompt the tenants were with their monthly payment.

         Amount of Listings in the Area
Go online and do a search to find out how many rental listings there are in the area. If there are a significant amount of available rentals, consider that this area might have gone bad or that the rentals are subject to a seasonal cycle.

         Taxes
Property taxes are not standard across the board. Make sure you are aware of the tax rates in the area before you purchase.

         Quality of Schools
Check out the quality of the school/s near your property if you are planning to purchase a larger home geared toward families.

         Proximity to Amenities
The proximity to the amenities in the area are important, as it can be a huge selling point when you market your property for rent. Also check for upcoming developments in the area.

        Crime
Make sure you visit the local police station or ask around the area about the crime levels. No one want to rent a property in an area notorious for burglaries or muggings.

        Job Opportunities
Take note of the job opportunities in the area. Tenants will flock to an area with a large number of jobs available.

       Age of Property
Although there are a number of exceptions, it is better to purchase property less than 25 years old. This way you ll be less likely to have building code and maintenance problems.

     Size and Layout of Property
Keep the needs of the potential tenant in mind when you search for investment property. For example, some older homes might have 5 bedrooms but only one bathroom. These days, big families tend to need more than one bathroom.

It is important to put yourself in a potential tenant’s shoes when you shop for investment property. You also need to consider that you might need to sell the property at a later stage to a homeowner who will look at the property with different eyes. Make sure to start with calculating what you can afford and how much rental you will need to make this a profitable deal.


If you or a client would like to sell your Privately held real estate note, Structured settlement, or Annuity, or need Mortgage Financing for both high or low credit scores, call C.J.F. & Associates at 1-800-908-9312 or go to our website at http://www.cash4you123.com for more information.

Author Resource:->  CitiHomes is one of Cape Town's best estate agencies, offering property for sale and to rent as well as a number of property management services. For more information visit http://www.citihomes.co.za/

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