Whether you are purchasing a primary residence, a vacation home, or a rental property, buyers need to be aware of 5 key ingredients that make a sound investment.
Market Depth
Are homes selling in the market you are looking to invest in? And if so are the homes selling within the price range that you would resell your investment property? Ask your real estate agent or do your homework, knowing the exact number of sales at each price point will help you to make a good decision when hunting for an investment property.
Resale Appeal
Although you may not think about resale appeal as you shop for a new home for your family, this is very important. Our homes are part of our financial portfolios and we always want our investments to grow in value. Look for homes that are well sized, have good design, a possible view, and in an area with potential for growth. These are just a few things that have good resale appeal.
Location, Location, Location
What are the up sides to where the home is located? Does it have positive amenities in the community? Quality Schools, city infrastructure or proposed improvements of infrastructure, recreational opportunities, hospitals, and employment generators.
Rental Appeal & Potential
Ask yourself these two questions.
- Why would anyone want to rent your house?
- What kind of renter are you looking for? Long Term? Or vacation renter?
Once again we suggest doing some homework before setting out to find the perfect investment property. Find out if the rental market is over saturated and what demographic is renting homes in your area. Is it families? Single people? Is long term rental properties in high demand, or vacation properties? Your real estate professional can help with these questions and guide you to properties that meet your criteria.
Would you live there?
When looking for a primary residence this is the first thing buyers think about. That feeling you get when you can see yourself living there and you know this place is home. Buyers looking for invest properties need to think the same way. If you would want to live there, then other people will want to live there also.
