Find the Property



Main Factors on Finding the Property
As already covered, you will probably look at 100 properties, put offers in on 30, negotiate with 10 and then end up buying 1. Unfortunately, if you want to find the right properties, this is the amount of work involved.

At the present time, listings are in short supply because demand has outweighed supply over the last year or so. This means that if you want to clinch a deal don't procrastinate. You have to be in quick. However, also be aware that the property cycle may be starting to peak now and things may change over the next year. Be wary of what you buy - so you don't lose out.

Unfortunately the gap between house prices and income has grown even wider due to immigration and the demands of population growth in the main cities. Most experts will tell you to enter the property investment arena around the neighbourhood you know - preferably close to where you live.

This is because you should have a better idea of prices in the vicinity and you can also keep an eye on your investment property.

The recent increase in the popularity of property could be because the equities market has not been performing well for some time. The other reason is because of the 'hype' created when your neighbour tells you that he/she has made a "killing" on a small property and questions why you are not into it.

When people make a profit on investment property they never keep it to themselves and good news spreads fast. Good news, however, can be bad news for some people who go into the investment market without any preparation or education.

Make sure you find the right property for the goal you have in place and if you are a new investor, go slow to minimise the risks involved.


Consider Tenants when Buying
When buying an investment property, you should consider what tenants are interested in rather than what you are interested in. If you are looking at investment income, how tenants perceive the property is critical. Have a look at some of the following factors when choosing an area to buy into:

Transport

  • Is the area serviced by good public transport ?
  • Are the local areas of industry easy to reach for employment?
  • How busy is the passing traffic?
  • What is the local public transport and rail like?
  • Are any major changes planned in the near future that could attract tenants to the area?

Amenities

  • Supermarkets.
  • Restaurants and cafes.
  • Pubs and bars.
  • Multiplex Cinema.
  • Leisure centers and health clubs.
  • Quality fashion shops.
  • Sporting facilities.
  • Libraries.
  • Variety of takeaway shops.

Visual Look

  • What does the place look like?
  • Is there any greenery about?
  • Are there parks handy or is the whole area concreted?
  • Are there any local environment issues that tenants have to comply with?
  • Are there areas in the locality that would be termed unfavourable? Such as sewage works or rubbish disposal depots etc.

Safety

  • Safety is a big issue so the history of criminal activity is important.
  • Is the area a crime hotspot.
  • How much will the insurance premiums be affected by criminal activity.
  • Is there a police presence.
  • Is it safe to walk on the streets or attend the local

Neighbours

  • What are people like in the neighbourhood? If the neighbours are noisy and unpleasant, it will be difficult to rent the property to a good, quiet family.
  • Are students occupying premises nearby, because a university is located in the area?
  • It's important to find out the types of families living in the area. This comes down to local knowledge and talking to people and tenants in the locality.