Buying an investment property is a lot different to buying a house to live in - that part is obvious. You have a different list of needs and wants for somewhere you're going to have tenants, right?
But that doesn’t necessarily mean you should just buy any old property that doesn’t break the bank, you still need to do your homework. And often choosing the right location is half the battle. So here is your warning - these are 5 things to look out for when looking to buy an investment property .
Signs of vandalism
Have a look around the neighbourhood - is there a lot of graffiti on walls, fences or the local bus stop? It could be a sign that it isn’t a safe place to have an investment property, as the risk of damage to your house would probably be quite high.
This also goes for a lot of rubbish scattered around the streets, evidence of car burnouts on the road, broken bottles and buildings with boarded up windows - this can all point to significant crime taking place in the area.
Vacant homes
Lots of empty homes in a street or suburb can mean a couple of things - that it isn’t a highly sort after place to live, or maybe it is more of a location where people have holiday homes.
Both of these things could signal difficulty with getting long term renters into your property, so is probably best to avoid buying a property investment here.
There could also be a possibility of the area attracting vandals if they think/know that there won’t be a lot of people around.
No amenities/shops
Go for a drive and see if there are any shops close by. Supermarkets? Restaurants, parks or other entertainment amenities? All of these things attract people, and of course that is what you need in order to make sure your investment home always has a high occupancy rate - and that you can have your pick of great tenants.
It is also important that there are schools, places of work, and other services that residents would regularly require, as this will naturally attract more people to the neighbourhood.
Read more: How to: Property investment for beginners
Can you even get a park?
We’re sure a place for parking cars is something you need for your home, and so it needs to be something your property investment also has.
If there is no driveway, or the house is right on the road in an inner city suburb, then it is recommended that you work out what kind of parking would be available for potential tenants - as you can guarantee they will ask on inspection of the property.
How accessible is the parking on the street? Is it hard to get them during the day, but okay in the evening when people head home? It might be a good idea to check at different times before you look to seriously at buying the property, as it could have a detrimental effect on the demand for the house, or even reduce the weekly rent.
What happens when the sun goes down?
During the day the property could be down a quiet, residential street with not a lot of traffic or hustle and bustle. But at night, things could be completely different.
So make sure you visit the neighbourhood when the sun goes down, and if possible, stay until the sun comes back up (not in your car - in an AirBnB or another kind of accommodation). This will give you a greater insight into the ‘vibe’ of the suburb, and if there is anything in particular you need to be aware of that could have a positive, or negative impact on your investment.
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Once you have bought your shiny new investment property - you then need to get the right tenants for it! Download our guide to help you avoid handing over the keys to risky tenants.
