Investing in property is one of the top time-tested ways to build your wealth and prepare for the future. According to real estate experts, people continue to take an interest in the property market even in times of economic downturns because of the huge potential of high return and the tax advantages it can offer. A well-chosen real estate asset will increase in value over the years and can be a source of rental income, making it a profitable long-term investment vehicle.
However, it would be smart to remember that as with all other investment strategies, the potential returns should also be weighed against the potential risks. One wrong miscalculation or careless decision can easily derail your chances of enjoying capital growth. That’s why it’s important to equip yourself with relevant, accurate information before you make a move. You should also consider getting the help of a trusted property advisor to guide you as you navigate the highly volatile market today.
With diligent research and the assistance of an expert, you can first determine what to look for when buying an investment property.
According to strategic investment expert Lauchlan Leishman, there is a wide range of factors that will determine the success of your investing approach, and the odds of achieving your objectives will depend on the market conditions and the decisions you make along the way. But making a good start by choosing the right property is the first most important step to ensuring that every penny you invest will bring back multiple returns.
The following key criteria are worth checking out when you’re shopping for property. These characteristics typically provide high growth potential and long-term advantages.
- Great location. Properties close to the centre of business and lifestyle hubs will always attract the market’s attention, and will most likely steadily appreciate over the years. Don’t just focus on the obvious choices such as capital cities – get a real estate adviser with a nose for up-and-coming neighbourhoods that may not be as popular today, but are expected to be very much in demand in the near future.
- Good bones. Properties with classic architectural styles will never go out of style and will always attract the interest of buyers, renters and investors. But keep an eye open for other properties that may not exactly fit popular standards, but may have the potential to rise in value with a few tweaks or some well-planned renovation.
- Emotional appeal. Choosing investing property, whether you’re an investor, a buyer or a renter, will always have a strong emotional aspect to it. How will people “feel” about the property? There is no tangible way to detect this; it can be by how one room flows to another, or whether the space feels comfortable and safe. Some properties may be huge and vast but will still feel dark and stuffy, while a small apartment can be light, warm and welcoming. Tune in to your gut feel – sometimes it can be the last main reason why you should choose one home over another seemingly equally appealing property.