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3 Tips for Buying the Right Investment Property

1. Know What Property You Want

There are a multitude of property opportunities and you need to ask yourself what you are looking for. If you are looking for a family home, the answer may be fairly easy. You will want to live in the house, pay it off and maybe sell it for more than you paid. This is standard for the majority of investors and a safe move.

Alternatively, you may be looking at property investment as more of a financial opportunity. Investing into a rental apartment complex or a storage warehouse can become a second income for you. Many people pursue this direction while some undertake both paths. There is a lot of advice written about these two kinds of property investment, but you will probably know which one you are looking for already.

2. Consider Location

Is the location exactly what you want for the property? For example, buying a home for a family should be weighed against what the area offers. Where are the nearby schools? What kind of school is it, are there public transit stops nearby and are there grocery stores nearby. Many more questions become very relevant as you begin to think about it.

If you are looking into the financial side of property investment, the location is arguably more important. Does the area have the requirements to create a successful property opportunity? Nearby commercial zoning is important for creating attractive options for potential renters. Nearby malls, stores, restaurants and parks can be a big green light indicating a prime area for investment. Does the income of the area support your idea for a property? Creating an eco-friendly, designer brand apartment complex may not work in low income housing as well as it might in a hip neighbourhood area. Buying the right property heavily depends on what you want and what is around it.

3. Property Condition

Consider what you will need to bring the property up to your idea of acceptable. Is the property you have your eye on going to need repairs? Investing in newer properties generally means you will not have to worry about condition immediately, but will bring about a higher price (usually). Conversely, an older building may be worth less, but with a little hard work you can make it look incredible.

Before investing in a property, new or old, hire a contractor or architect to inspect the grounds and the property itself. Make sure that the person you hire is certified in their field as this inspection will influence what you will end up spending on this property. Similarly, hire an exterminator or animal control officer to take a quick look around the house and grounds. An infestation of funnel web spiders in the basement would be nice to know about before you sign on that dotted line.

The best thing about this is that it’s an exciting new time in your life, and you should embrace the opportunity to get ahead financially with property investment. The home loans from NPBS are great for new home buyers and investors alike, so no matter what kind of property you’re looking to buy or when, consider the team at NPBS for your next property purchase.

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