Top 5 Most Profitable Features of an Income Property
There are several reasons to invest in property—like buying a residential property to rent out. Investing in real estate can be very rewarding if you make the right choice, but it can also be an intimidating process. Real estate is a highly impacted business, and you want to research thoroughly before you make any investments. Firstly, you want to know what sells and what doesn’t. Here are seven profitable features of an income property which might make it sell quicker.
You hear it all the time with real estate: location, location, location. If you don’t buy in the right area, you won’t have many people interested in purchasing or renting from your investment. Location boils down to the city, town, or province and, most importantly, the neighborhood you are buying in. The geography of communities is tricky, and you want to pay attention to the booms of local districts. You also need to ensure that whichever neighborhood you are purchasing from allows rental fees.
You will need to consult with your local municipal planning department for any updates on zoning and developments in the works. You might be purchasing in a town expected to skyrocket its growth rate because of its low price points and developing construction. Don’t rule out a city because it appears empty or under-developed; you might be looking at a neighborhood on the verge of a spike in popularity. You want to be careful of additional housing construction because you will have competing markets, so you might want to let future developments settle in first before investing.
You might be interested in a fixer-upper, but a newer home can help you save you and your renters a couple of conversations with your local plumber or contractor. Also, a more contemporary home comes equipped with the amenities that new buyers like to see. Amenities could include solar panels, Smart technology, insulated home paint, or neighborhood parks, pools, gyms, public transportation, and attractive perks. You want to look for an enticing blend of public amenities and private property.
Alarming crime rates can drive property value down through the ground—you want to be aware of this when scouting out your location. You will have buyers fleeing from areas known for their criminal activity. Thankfully, local police departments or websites like SpotCrime will have accurate crime statistics for neighborhoods. Crime rates can range from petty crimes like vandalism or car break-ins to more severe crimes. You might want to evaluate the police department also and any incidents that have occurred in the department.
Most people don’t want to commute too far to their jobs. This reluctance will make certain areas near job markets grow exponentially. You can find out how your chosen area rates for job availability online or by visiting a local library. Locals of the town or city will also give you an understanding of what to expect. However, a nearby job market might either raise or lower your price point. This will shift the type of renters or buyers that will be interested in your income property.