When shopping for a property investment, investors need to carefully study and understand the inclusions of every offer. After all, no two real estate assets are the same no matter how alike they may seem.
That being said, there are some key features that are present in every investment property and one has to pay careful attention as to how each option fares in each of the following categories.
No one wants a dilapidated property. It’s possible to flip one but that’s too risky and requires quite the amount of resources. This is why it’s always best to invest in something that’s in good condition and we don’t just mean pretty. It has to be in tiptop shape inside, outside, above, below and within.
- Useful Life
Every asset has an expected serviceable life. This can be lengthened or shortened depending on the maintenance and upgrades done on it. It’s crucial to know this number when seeking an investment to consider. After all, why buy one that’s meant to be fully depreciated in a few years time?
- Value Potential
Depreciation is expected but if one chooses an investment property in a strategic location with the right factors in play, there’s a good chance that it appreciates rather than depreciates over time. Although the building itself may not stay intact in say 70 years, the land will continue to grow in value.
- Ongoing Costs
Repairs and maintenance costs don’t form part of the list price so many buyers tend to overlook it and this can be fatal. Why? That’s because these are regular costs that must be spent in order to keep the investment property in shape for the rest of its useful life. The lower it is the better.
When it comes to location, we can further the bullet points into subcategories to include safety, convenience, transportation, foot traffic, and neighborhood to name a few. It’s a crucial aspect that has to be heeded and one that greatly depend on the type of property being sought and the purpose for which it is bought.
Depending on how one plans to utilize the investment property, the preferred dimensions can drastically vary. But what’s important here is that the space should be breathable enough even with furniture and belongings moved in. It should allow ease in movement for comfort, productivity and safety purposes.