When researching property investment, three of the most commonly asked questions relate to when the market will recover and how recovery will be evident, knowing what to buy and features of a property that make it a good investment, according to Property Observer’s Michael Matusik.
Knowing what represents a good property investment is vital. Quite often, property investors place too much emphasis on where, rather than what, they should buy.
It is recommended that property investors find out about the number of sales that take place in the area each year and the number that are sold in the price range in which they would like to resell their property. Rather than focusing on median prices, sales volumes by price group should be well researched.
A good investment property will also have good owner-resident resale appeal. In other words, the area will ideally attract more owner-residents over time as this vastly increases the resale audience of a property.
Well-located investment properties are situated close to a range of amenities – these appeal to owner-residents and can attract a better standard of tenant. Opportunities for employment are also important and it is worth finding out about new infrastructure planned for the area.
Astute investors know details of the rental demographic that their property will appeal to. It is suggested that a property appeal to at least two out of three of the most significant rental demographic segments in an area.
Finally, a good investment property is one that the investor could live if they really had to.