Investment property can be a great way to grow your wealth over time, but not all properties are created equal. To ensure that you are making a sound investment, it is essential to consider the following factors when evaluating a potential property.
One of the most important factors to consider when choosing a property is its location. Properties located in desirable areas with high demand tend to appreciate in value and have a lower vacancy rate. These areas typically have a robust local economy, a high standard of living, and a range of amenities and services within easy reach.
When evaluating a potential property, consider factors such as proximity to schools, shopping centres, transportation options, and employment hubs. A property’s location can significantly impact its desirability to renters, which will, in turn, influence the amount of rental income it can generate.
Potential for rental income:
Investment property/s are most often defined by there potential for generating rental income. Properties that can generate positive cash flow, or have the potential to do so with some upgrades or renovations, are generally considered suitable investments.
When evaluating a property’s rental potential, consider factors such as its location, condition, and demand for rental properties in the area. The more desirable the property and in-demand rental properties there are in the area, the higher the rental income is likely to be.
Low maintenance costs:
Investment property/s with low maintenance costs are easier to manage and will save you money in the long run. Consider factors such as the property’s age, the materials used in its construction, and the overall state of its systems and fixtures.
Properties that are well-maintained and updated with modern designs and fixtures will generally have lower maintenance costs and be more attractive to renters.
Investment property in areas with a strong and stable local economy are more likely to appreciate. Consider factors such as the strength of the local job market, large employers’ presence, and the local economy’s overall health.
In addition, properties in economically stable areas will typically have a strong demand for rental properties, which will help to ensure that you can generate a steady stream of rental income.
Future growth potential:
In addition to evaluating an investment property/s current rental potential and economic stability, it is also essential to consider its future growth potential. Consider factors such as planned developments, infrastructure upgrades, and demographic shifts in the area to determine the property’s future growth potential.
Properties in areas with strong future growth potential are more likely to appreciate in value and provide a solid return on your investment.
How does sourcing an investment property work?
Building a solid investment portfolio for income, pension, family, business, or other reasons requires an experienced hand to ensure that the investment meets the needs and fits into the current portfolio.
Whether a private client, wealth manager, private bank, family office or Trust, Rowallan Private Buying Agents can help. Retaining discretion at our core, we have been assisting buyers in increasing, evolving or even starting their portfolios for years. Having enjoyed a portfolio of our own, we know what matters and can search, find and advise on the best property for you.
Just as with our core residential search, we will listen carefully to your requirements, search for them, present you with a case for each one and then either attend viewings or create a video for you to see the properties if required.
The case for each one will be decided by you, our client, but will undoubtably be based around return on investment (both net yield return and capital growth opportunity) and location.
Our extensive contact list mean that we can cover much of the UK from Scotland to the south coast of England and we have teams on standby to provide specialist help regarding tax and other such legal or material matters.