How To Find The Perfect Investment Property
Focussed property investors always keep an eye on capital gains and rental yields. How much does a capital asset increase in value over time cannot be estimated right at the outset. However, you will invariably be rewarded with capital gains if you buy your investment property in right location and in historically strong areas which also fall within the ambit of active town planning for future.
While it is important to think of capital gains, there is an urgent need to square off mortgage liabilities too. This is usually done by roping in tenants at your place. The rent they pay you usually offsets the monthly mortgage (unless we go into the concept of negative gearing). This is why it is very important to maintain low vacancy rates for your purchased property.
Some of us have faced tenant crisis, ill-behaving tenants, ready-to-conjure-up-a-dispute kind of tenants and their likes. We know the significance of a long-term tenant who is also very good with his etiquette. You can do your bit to entice such tenants.
Tenants are just regular people looking for a home to live till the time they save enough money to buy their own home. Of course, people rent out homes for other reasons too. To come back, tenants look for some key qualities in their home.
As a first, the home should be a part of a great neighbourhood. This is important for maintaining a man-environment fit. Good neighbourhoods add to one’s disposition, one’s ability to tackle crisis, and in short one’s whole viewpoint of life. These changes take place over time and are best helped by other attributes too but a good neighbourhood is a fulcrum point for inculcating high self-esteem in a person.
Schools, consumer hubs and transport routes
In addition, tenants look for reputed schools, health facilities, church and lifestyle/consumer hubs in close vicinity of their home. It is also crucial that the homes are close to major transport hubs. This is all the more significant if it is rented out by a working couple who commute to office each morning.
Most people seek home in areas which are not marked by vandal activity. Any neighbourhood which allows graffiti artists a free run will usually find itself low on tenant’s preference list.
Today, cafe culture is fast picking up. This is a direct fallout of our increasing inclination towards capital cities and urban lifestyle. Needless to say then that this is another feature a tenant seeks.
I have also found that tenants have become very conscious towards energy savings and environment-friendliness. In times such as these, a home marked with energy conscious moves (like a living wall or energy-rated appliances) will score prolifically in the eyes of tenants.
As a tenant, what would you foremost seek in a home?