Top 7 Characteristics of a Profitable Property to Invest

There is a lot of information out there about how to best invest in real estate . Unfortunately, much of the training available promises to...

There is a lot of information out there about how to best invest in real estate. Unfortunately, much of the training available promises to teach confusing and complicated methods. They talk about secret formulas you need to use in order to create wealth from property investment.

In all reality, investing in real estate doesn’t need to be as hard as many of the “experts” make it out to be. The opposite is true. Property investing is a fairly straightforward process if you keep to some basic qualities in mind and don’t overcomplicate everything.

It’s likely that you don’t need to use any high-risk strategies to purchase property that will help you gain the financial freedom you’re looking for. Keep it simple and you'll be on your way to bringing in a quality income during your retirement years. The main thing to stay true to is investing intelligently. Let’s take a look at the seven basic characteristics to look for in each property you might invest in.

Top 7 Characteristics of a Profitable Property to Invest

1. Central Location

Buying in a central location is one of the most basic ways to ensure a successful investment experience. It only stands to reason that your renters want to live where they have easy access to everything important in their lives, such as:

• Schools
• Shopping
• Entertainment
• Restaurants
• Employment

Your property will remain in demand for many years if it’s located in a central area.

2. Appeal to a Broad Market

It’s always a good idea to buy properties that appeal to various markets. For instance, a property that’s located near a large university brings flexibility in terms of the types of tenants you find. You might rent it out to retirees, small families, young professional couples or university students. It’s not a good idea to limit the type of tenant to only one market segment. Make sure to discover a property that can adapt to various markets.

3. Appeal to the Owner-Occupied Market

Yes, you want to find investment properties in areas where it’s easy to find tenants. Keep in mind that rent-only areas have a tendency to become rundown because renters don’t take the same type of pride in their homes as owner-occupiers do. For this reason, consider whether the property might have the potential for resale to owner-occupiers.

4. Located Near Infrastructure

This should be obvious but it’s worth mentioning. Your investment property must be near infrastructure. This means you want to look for simple commuting opportunities with easy access to main roads and also public transport. It’s a great sign for population growth estimates if you notice that money is currently being spent to build out more infrastructure near your property.

5. Median Pricing

Aim to purchase in the median price bracket. This keeps your market open to the widest available pool of renters and even future buyers. Let’s say you’re in a market where the median price is $500,000. Try buying a property priced around $450,000 to $550,000. Going higher might mean it’s going to be tough finding renters who can afford it. Going lower might mean the property won’t be as attractive to potential tenants.

6. Provide Convenience

Your tenants are the same as you. This means they want to live near gyms, cafés, childcare and convenience stores. Look to invest in areas where your property is close to these types of amenities.

7. Do the Numbers Work?

Of course, any investment property must make sense from a numbers perspective. Find properties that offer you the correct balance as you crunch the numbers. There must be impressive annual capital growth and gross yield present in the deal.

Remember that purchasing investment property shouldn’t be overly complicated. Paying attention to these seven qualities will help make your buying experience a positive one. However, if you think you need help in finding properties and quality advice about making decisions, then you can search for online local property consultants like property buyers agency if you live in Australia or similar like this in any part of the world.

Overall, your plan should include the main tenets that have always served investors well. Find quality properties, hold them for retirement and use the rental income for living support.