Property investment requires some level of meticulosity, especially for a first-time investor. This means looking beyond the surface and diving into the most minute details to understand the pros and cons and find the ideal property that meets your goals. So, whether you want to purchase a residential or rental property, here are key factors you need to consider.
Possible growth
People have always been drawn to rapidly expanding cities because they offer abundant economic opportunities and serve as hubs for trade, culture, and education. Planning is one aspect that makes all of these possible. No city can experience a significant level of growth without proper planning. For this reason, it’s important to consider the anticipated infrastructure and development in the area when looking for a property to buy.
This is in addition to ensuring that the surrounding areas experience capital and population growth. For example, Epe has a master plan that considers the city’s history, culture, value system, projected infrastructure development, and existing infrastructure in neighboring cities. We’ve used these insights when making property purchase decisions.
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Property Location
If you ask any real estate agent to name the three most important things a property should have, location is always top of the list. This is by no means a coincidence because location is what determines how favorable or unfavorable your real estate investing will be. The term “location, location, location” is a phrase that has circulated the real estate industry since 1926, according to The New York Times.
But why is location such a crucial element? Simply put, a house cannot be moved from one place to another, so if you invest in a bad area you will be stuck with it until perhaps, you decide to sell it.
When searching for a residential property, it is important to consider the neighborhood’s proximity to amenities and the availability of green space and scenic views. When valuing commercial real estate, accessibility to markets, warehouses, transportation hubs, freeways, and tax-exempt areas is also important.
Good rental returns
Rental value is the fair market value of property while leased. When considering a property for investment, you should consider its rental value first. Also, ensure that the average rent in the area covers as much of the property’s maintenance costs as possible. The rent you charge should, ideally, cover your mortgage, taxes, and property maintenance costs.
Conclusion
Property investment requires a lot of decision-making and should not be undertaken hastily. One cannot go wrong by conducting thorough research on the area, structure, and price. To make informed decisions, it is necessary to ask the right questions and identify potential issues with the property. When you are eventually ready to purchase a property, Numero Homes property experts and financial advisors will guide you through the process and help you make the best property decisions that align with your needs.