Real estate has proven to be one of the strategic ways to create long lasting wealth. If you have been wondering on how to retire early without having need to worry about finances, then start investing as early as possible in real estate.
And if you are considering on acquiring a new property, this is one of the greatest tips that would guide you on things to look out for in your pursuit of acquiring new properties.
So, relax as a ride you on the journey of important metrics you should consider when acquiring a landed property or properties as the case may be.
The site or place where the landed property is situated remains one of the greatest factors to consider when buying any landed landed property. Your preferred location of investment will determine if you will make a loss or profit, and it can even tell how large your profit margin would be. Your chosen location also determines the type of tenants you attract and the vacancy rate you charge. Imagine a scenario where you contacted a broker or realtor who has a house for sale in Lekki, Lagos state or a house for sale in Abuja and you buy any of the houses in these two locations, the type of tenants and rent fee of such property is going to be different when compared with purchasing a property from a less populated and less industrious location like Ekiti.
2. SIZE OF PROPERTY
If you are considering a family-sized accommodation, you want to ensure you have properties to accommodate families and not bachelors. The quality of local educational facilities in the area also needs to be carefully examined. If a property is good, but the nearby schools are poor or non-existent, it can affect the value of your investment. Another instance is knowing the kind of property to buy for a student populated area even though you will have fairly regular vacancies as regards new sessions which also equates to income, but you don’t want to run a loss by having to repair damages every now and then with your profits.
3. AVAILABILITY OF SOCIAL AMENITIES
If the goal is to ensure people rent your properties, then it is necessary to consider peculiar benefits for the prospective tenants too. Are there necessary social amenities like water, good roads that lead in and out of the area? Check the potential location for current or projected parks, malls, gyms, movie theaters, public transport hubs and all the other perks that attract renters. Cities, and sometimes even particular areas of a city, have loads of promotional feature that will give you an idea of where the best blend of public amenities and private property can be found. This is also a good start on how to determine a good rental property. Most of the houses for sale in ikeja have good social amenities.
4. SECURED ENVIRONMENT
Obviously, no one would love to rent an apartment in an area where the crime rate is high. This is also another important rental property advice to consider when deciding the kind of property you want to invest in. A visit to the Police station for accurate crime statistics or a careful observation of the area is very needful. Getting familiar with residents of the area is another way to get the information needed. Items to look for are vandalism rates, serious crimes, petty crimes and recent activities. You might also want to ask about the frequency of a police presence in your neighborhood.
5. VACANCY RATE
When a particular area has a high number of vacancies, this can either be a bad or good sign. As a potential real estate investor you must ensure to find out which. It could be that people are leaving the area or it is a new place with potential for future growth. You should also determine whether you can cover for any seasonal fluctuations in vacancies. The vacancy rates also give you an idea of how successful you will be at attracting tenants. High vacancy rates force landlords to lower rents in order to attract tenants. Low vacancy rates allow landlords to raise rental rates
As a real estate investor, you need to ask basic questions like, “ What is the areas proximity to the market?” “what are the prominent businesses in and around the area?” “what is the future growth rate of the area?” for instance some houses for sale in Ajah and houses for sale in Ikoyi are proximal to business areas. These are some of the questions you should have answers to before making payments for a property and would prove important as a rental property investment strategy.