When you buy an investment property, there are many things that you can change. Kitchen appliances, bathroom fixtures, and paint colors are some common examples. You may also be able to change the number of bedrooms or bathrooms from a single building. However, one thing you cannot change is the location of the property. For this reason, the best location for property investment is the most important factor that you should consider before purchasing your first investment property.
Here are 10 factors for searching the best location for property investment:
- School Quality
To be fair, not every prospective tenant cares about the quality of the school, but as a good rule of thumb, if you are investing in single-family homes or rental units with more than two bedrooms. , Then it should be a priority. Simply put, families want to live in higher-class school districts and are often willing to pay more for a home located in a desirable district.
- Unemployment rate and job growth
People usually try to avoid investing in the neighborhood. If jobs are leaving the area and unemployment is rising, this is usually a negative catalyst for the local real estate market. At the city level, you can see employment, wage growth, and other important trends and you should be able to know where jobs are increasing or decreasing within your city.
- Population growth
It is easy to understand. You want to invest in areas where people are going out, not out. You can ask your real estate agent where they are seeing the most shopping activity, the most demand for homes, and other growth-related factors.
- Type of neighborhood
It is more a matter of personal choice than anything else. Do you want to invest primarily in areas occupied by families, young professionals, college students, etc.? As a personal example, I like to invest in areas where college rentals dominate the market, but this strategy is not for everyone.
- Insurance Cost
Not every location is equally insurable. One thing you should definitely consider is whether you will need any special type of insurance, such as flood coverage. You may wonder what local areas are in “flood zones” and flood insurance is not cheap.
- Walking Ability
Obviously, if you are buying rental property in a major city, there are going to be some amenities within walking distance. If you are in a market where not all houses are moveable to stores, parks, public transport, and other such destinations, but yours is, this can be a big selling point.
- Nearby facilities
On a similar note, while not every property may be moveable, having tons of nearby businesses may be the next best thing. Simply put, many renters do not want anywhere, even if the house is good. They do not want to drive for 15 minutes to the grocery store or to get a cup of coffee.
- Public Transport
While this is not the most important factor, easy access to public transport, such as a bus or rail service, can open up your property to many more potential rentals. This is especially true in markets around major cities.
- Crime rate
Just being in a safe neighborhood is an important factor for homebuyers, it is also a common priority for renters. Before you decide on investment property, it is a smart idea to check the local crime data in the neighborhood.
- Distance from you
While it is not necessary to find a high-quality property to purchase, it is important to consider how far you want your investment properties. This is often overlooked by first-time investors, especially those who plan to self-manage.
As a final consideration, location should be a number factor when starting your investment property search, more important than the number of bedrooms, the sale price, the need for renovation, and whether the home has a good outdoor space or not.
We help you to find a variety of budget-friendly properties for your real estate investment. So, if you are looking to invest in Real Estate, Propertymakkerz is the one-stop solution for all your requirements.