There’s no doubt that building a property portfolio is a smart and sustainable way to secure your financial future. However, the success of this strategy depends largely upon choosing the right property in the right location.
The ideal investment is a turnkey property which includes the important attributes that tenants look for in a rental. Getting this right is critical and is the key to ensuring the property remains tenanted and achieves long-term capital growth. In our experience, there are 5 non-negotiables that any property you consider must have to gain the maximum benefit from your investment. So read on to discover the 5 investment property must-haves for financial success.
1) Proximity to CBD
As housing prices continue to rise, more and more people have been forced to buy homes on the urban fringe and beyond. While this can be a great option for homebuyers looking for value, as an investment strategy, it’s not the best approach. We recommend our clients only consider properties that are within 35 kilometres of the CBD. Not only have properties with close proximity to the city consistently shown growth in value over time, they’re also in much higher demand with tenants than those located on the outskirts.
2) Government infrastructure spending
One way to spot a growth area is to look at the government spending that’s happening. If there’s money being allocated to develop community facilities, parks, schools and other infrastructure, it’s a good indication that the area is expanding. Purchasing an investment property in these locations is smart, because as the community grows and infrastructure improves, so too will the value of your land and the number of tenants looking to move in.
3) Close to schools and childcare
Proximity to schools and childcare is high on the wish list of every family and young couple looking for their ideal rental property, so this is a box you should definitely tick. Attracting this demographic is ideal, as they’re often ideal tenants who will look after their home and are looking for a long-term rental arrangement. As any parent knows, being close to school makes the morning rush far easier, and in some places, being within the zone of a good school can also really drive rental demands and property values through the roof.
4) Close to public transport
Although most households these days include one or more cars, being close to public transport is as important as ever. Many people find it cheaper and easier to catch the train or bus to work, so it’s a massive drawcard if this is an option. On top of this, you can often command a higher rent, and your property will also maintain its value over time, as demand for public transport will only increase as the cost of running a car continues to rise.
5) Close to shops and hospitals
Today, as life gets busier, convenience is highly valued, and a home that is located close to essential services gets a big tick from potential tenants. When it comes to the places we all need to access regularly, no-one wants to travel far. So if your investment property is within easy reach of a supermarket, doctor, hospital and shopping centre, you won’t have any trouble renting it out.
Must-haves for a reason
When buying an investment property, don’t be tempted to compromise on any of the above—they’re must-haves for a reason. A home that includes these features will provide you with a solid investment that is a valuable part of your property portfolio, generating rental income long-term, and growing in value over the years. When you do this, and follow our proven property investment strategy it’s highly achievable to set yourself up for an early retirement and financial freedom.