If you want to make property investment a profitable experience, it’s important you buy properties that everyday Australians will want to live in. The more desirable your investment property, the easier it will be to find tenants, to keep tenants and to raise your rent.
So if you’re wondering how to find an investment property, here’s what makes a rental property stand out for all the right and wrong reasons.
Location is everything when it comes to property investing, so you need to get it right. But what makes for a great location depends on the type of property you’re buying and the tenants you want to attract.
If you’re buying a unit for young professionals, then a place close to the CBD with buzzing nightlife and restaurants on its doorstep tends to be a safe choice. Whereas good schools, a fenced garden and easy access to parks and playgrounds may be more important when you’re purchasing a family-sized home.
That said, there are some common location deal-breakers. No one wants to live in an unsafe area that’s visibly down at heel. So do your homework beforehand by checking local crime statistics, especially if it’s an unfamiliar neighbourhood. A great place to start is on Homely.com.au who provide suburb reviews and Q&A’s to find out what it’s like to live in.
There are now more cars on the roads than ever before and not enough spots to park them, particularly in big cities. This can make the humble parking spot a big deal when it comes to rentals.
The more off-street parking spaces the property has the better – even if it’s a one-bedroom unit. Many people rent as couples, each with their own car that ideally needs its own spot.
Air-con and fans
Given our sweltering summers, it shouldn’t surprise you that having air-conditioning and ceiling fans makes a rental property more appealing.
If your chosen property doesn’t have air-con, consider installing a system, particularly in the main bedrooms. No tenant wants to be hot, sweaty and sleepless night after night, so this can be a huge selling point.
Tenants come with ‘stuff’ that needs to be put away, be this their clothes and books or their bicycles and skis. So the more storage a property has, the more favourably they’ll look at it.
Limited storage, on the other hand, can turn prospective tenants off as it can make for cluttered and cramped living conditions.
A modern kitchen and bathroom
Dreary and outdated dark wood kitchens and grotty bathrooms can be a big no-no for tenants. While a good lick of white paint can take you so far, if anything is broken, dirty or threadbare in these rooms it might need to be replaced.
Renters love a touch of luxury and convenience, so if your budget allows consider installing a dishwasher.
Australians are known for loving the outdoors, so if the property has access to a balcony or a backyard it becomes a more attractive rental prospect. But these outdoor areas need to be well-maintained and not overgrown with weeds, otherwise you’ll risk putting off tenants.
If you’re investing in a family suburb, then look for a backyard that’s fenced as this tends to be a non-negotiable if the tenants have children.
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