What should you look for in an Investment Property
A list of smart economic decisions on investment properties
You will find people selling you investment properties all over the place. Some of those are exceptional properties that are well worth the investment, others are overpriced, and other again appear to be very nice properties, but will end up costing you far too much, and are in fact poor choices for investment properties.
I can tell you for sure that an investment property is not necessarily the property that you would buy as your family home, although you should be able to feel comfortable in the investment property.
Let’s go to the list then, of points that you should look for when selecting or building an investment property (and we are discussing the facilities and amenities here – not the location. That is a subject for another day);
- select a simple floor plan and design. There is no need to get fancy here with nooks, bulkheads, and trick cupboards. The simpler the better
- no complicated electronics – just get the standard light switches and power points. They are easily replaced or maintained
- Get dark carpets and floor tiles. They are easier to clean and keep looking OK.
- Double garages have better take-up rates than single garages.
- Gardens as simple as possible – or even non-existent. If a tenant can make it look bad, chances are they will. In most cases, the tenant is not responsible for the upkeep of the garden. Are you going to go and weed and water every weekend? No – and nor should you by the way.
- Formica tech tops are fine. Stone or other materials are expensive and prone to damage. They are not necessary.
- Alarm systems are not essential. They are one more thing to go wrong, and a tenant can put their own temporary system in.
You may decide that some of these points are petty and not worth discussing, or you may decide that you want to offer a premium property that can be offered at a higher price, and so set aside what I have said here, and that is of course OK. I have learnt the hard way through that these points are generally true.
What you should be offering your tenants is a property where everything is properly maintained, it represents decent value for money. Good enough that they will want to stay in the property beyond the normal rental term, but not so so well appointed that the maintenance and repair cost takes away from your ability to make money on the property.
What do you think? What else would you add to this list? What would you leave out? Give me your feedback.