Finding the right investment property takes a lot of research and consideration. It’s not just a matter of choosing a quiet, leafy suburb, but finding a property in a neighbourhood that will attract a steady flow of tenants. Here are three key things to look for in a neighbourhood before you invest in a property.
Proximity to transport is one of the top drivers of rental demand.
It’s easy enough to look into the availability of transport options in any neighbourhood from the comfort of your own home. Use Google Maps to help you map out distances from various points to bus stops and train stations. A walking distance of five to ten minutes from major transport is prized by many renters, so this is something you should keep in mind when you decide which neighbourhood you want to invest in.
Having schools nearby is a major bonus if you intend to attract families to your rental property. Neighbourhoods with well-respected schools can often be a bonus. The availability and quality of a school can also easily be analysed through research on the internet or simply talking to the locals.
Is there a major development coming up in a certain neighbourhood? Has the government announced plans for a new major business precinct? These are all factors to consider before you choose a neighbourhood to invest in. Or, if a neighbourhood is showing early signs of gentrification, chances are, it’ll grow faster and you’ll be able to see higher returns on your rental property.
The key is to pay attention to the property market and keep up with industry news so you can identify these up-and-coming areas early on. Also, before you choose a neighbourhood, think about the type of tenant you want to attract. Do you want a continuous flow of students in an inner city suburb where transport and location are a top priority, or do you want to have a degree of stability by renting to families? Know your audience before you take the plunge.