When you want to increase your assets one of the options investors have is to purchase properties to then rent out. But it needs to be done with thought and an understanding of the area you want to buy in, and how the rental market is doing there. Sometimes choosing rental properties Geelong, or the area you are looking in, that will be a successful investment, is challenging. Here are some things to check into before you buy.
Consider the location
The location of your rental property is key to how easy it will be to rent out, and how much you can rent it out for. Think about nice neighbourhoods that are close to things like hospitals, shops, good schools, parks, and good commuting options.
Make sure you triple check the numbers
Before you sign be sure you have checked the numbers, and have someone check them for you too. Make sure all the expenses are taken into account and that what the property will cost is less than what you will make on it. That means being prepared for maintenance needs, roofing, landscaping, replacing the furnace and so on. Always lean towards expecting higher costs than are probable, just in case.
Avoid expensive maintenance costs
It is best to avoid properties that need a lot of maintenance that is expensive to do. For example, wood-sided buildings, driveways that are made from brick, roofs with cedar shingles. These are things your
property managers Geelong would have to take care of but spending money there, means less income coming in.
Look in areas where homes are priced high
There are always a few areas in a town that are more popular, where homes are more expensive to buy. This could be a great place to invest in a rental property as those who cannot afford to buy there, may look to rent there instead.
Buy a rental property that currently has low rent
If you can buy a rental property that has rents set at a below-market level, you have room there to raise those rents and still fall within fair market prices. Of course, that does mean that current renters in your
rental properties Geelong are likely going to be unhappy. That is why you should employ a company to manage it for you!
Make sure the property has great rental history
Check into the property's history and make sure it is stable. See how long tenants stay before you have to find new ones, whether they pay rent promptly and how they leave the space behind when they go.
Always comply with codes and regulations
Make sure you comply with things like zoning regulations and fire codes and if inspections have to happen that the property can pass it. Otherwise, you could be faced with expensive repairs to bring it up to something legal.
Opt for buildings that are less than 2 decades old
This one should be fairly obvious, older buildings come with higher maintenance costs, repairs and continuous problems to be solved. While the property managers Geelong can easily handle those, it is you that will be paying for it.
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