Buying a property for rental income? Here’s what you should know
22 May 2019
Buying a property itself is a daunting task. Investing in one for optimal rental returns is another ball game altogether. It requires a lot of forethought. From choosing a place to finalising the purchase of your rental property, plenty of planning and work is involved in that.
Below are some of the points you should consider, when looking for an income-generating property.
The location matters in terms of finding renters, type of renters and how frequently you may face vacancies. So, it’s good to examine the location of the project you’re planning to invest in. Areas that offer amenities like planned public parks, shopping malls, gymnasiums, public transportation etc, are more desirable. You can use developers’ project brochures and also do online research, to determine the availability of such facilities in a neighbourhood.
You also need to know what new developments are coming up and what has been zoned for special purposes by the local municipality. Ideally, you should look for a region with excellent growth prospects, where schools, business parks, shopping malls and entertainment zones are either already in place or planned.
If you’re planning to buy a property in a central area of the city, high taxes are going to be connected. However, such areas attract long-term renters.
The presence of quality schools in the area highly impacts your investment. Be it individual students or family with kids, everyone prefers to live in areas that are near to one or more good schools. Moreover, if you plan to sell your property in the future, having educational institutes nearby will positively impact your return value.
Besides having good educational institutes nearby, areas with growing employment opportunities have a tendency to draw more people for the obvious reasons. The most desirable situation for you, would be to own a rental property near to or well-connected to an established or rapidly-growing workplace hub, with reputable companies actively generating jobs there.
The rental home seekers also look for homes where they can add value to their lifestyle. Good projects with the best lifestyle deliverables, may be out of their purchasing reach, but they expect to get such facilities in a rental home. Projects with amenities like gardens, children’s play area, sitting area for elders, reliable security and professionally managed maintenance, are always preferred by families hunting for rental flats. The ambience inside the complex is very important to them.