Making a viable, sensible investment can be done in a variety of ways. The stock market, cryptocurrency, nostalgia items, etc. – these can all be great ways to spend money to make money! However, a lot of people turn to property investment as their first port of call, simply because real estate is known to be a safe investment that often brings in a very good return. However, you’ve got to pick your property right!
In all, a property turns out to be a viable investment due to a few different factors. Of course, not all factors are going to apply based on where you’re planning to invest and what kind of property you’re planning to invest in, but these are the general rules that will guide you to making a more profitable property investment. Make sure you ask these questions ahead of time, before sinking your money into a fixer upper that’ll never grant you a good return on your money.
What’s the Location Like?
The first thing to do is to consider the location: what’s it like? Is it desirable, in your opinion? What kind of people would want to move here? These are all very good questions for deciding on the location viability for a potential investment property, but beyond this, you need to check if the answers to these questions are good for your bank account.
Split the location up into sections. The physical scope of the land, such as general location like town, state, or country. Then think about the surrounding neighborhood. What amenities are on offer? Nearest schools, for example. What other houses are on the market in the area? How do they look? Are they complexes, for example, such as mentari court? Asking questions like these, also, will give you some insight into the typical people that would be likely to move in.
Similarly, make sure you do some research into crime rates in the area too, as too high a rate could make this real estate venture far less profitable for you. At a basic level, it could make affording good, reliable insurance a lot trickier.
What are the Taxes Like?
Then we move onto the property taxes you’ll have to deal with, as they’re always a little different depending on the house you’re planning to invest in. Similarly, these can change based on what you’re planning to use the property for, and it’s always a good idea to scope out how the tax brackets will differ depending if you buy the house up the street or the one down the street. Not to mention local tax laws could hike up the cost too.
Of course, high property taxes don’t have to be a bad thing. If you’re paying a high price, it means you’re investing in a wealthy area that could bring some very fine, and long standing, tenants your way. That ensures you’ll have rental income for not just the foreseeable future, but a good 5 to 10 years down the line too.
What’s the Job Market Like?
People want to move to and live in places where they can earn a living. They want their commutes to be short and to never be in doubt that they can find a job round the corner. And when a local job market is good, the housing market in the same area is going to be even better! More people can afford to buy a place of their own, but most of all, they can afford to rent without worry, which will make them consider more types of properties to move into.
So be on the lookout: how many people are hiring in the area? How many companies are in the area? Have any new ones moved in, and getting ready to hire? Are there any major employers, like corporations, with a local branch in town? Be careful with this last one; is this major company going to help or hinder the local area? Look into the backlash surrounding their move. But, if the answers to all of these questions are favorable, you can be sure you’re making a good investment with a local property.
If you want to know whether or not a property is a viable investment, make sure you’re looking into the stats and figures that make up the area. Look into job opportunities, local amenities, current house prices (and their history), and get to know the local tax world too. Then, feel free to invest!