There are no set guidelines or rules that you have to follow when purchasing a property for investment – or at least, that’s what those who have been involved in this line of business will lead you to believe. The truth is, each house has a different aspect to it which will appeal to certain people. There are things which apply to the masses (i.e. beige walls, neutral carpets), and those which may hit more of a niche market. Whatever you are doing, the one thing that matters if that your properties return your investment at the very least – with hopefully a bit more added on top.
Give It Curb Appeal
Whether you are planning to buy to do up and sell on or turn into a rental property, your house needs to have a certain amount of curb appeal to get people interested. The more viewings that you get, the more money that you will be able to charge – assuming that there will be a waiting list of those who are wanting to move in. Ensure that the outside is looking clean, tidy and presentable; the sort of house that you would like to live in and be proud to show off to your friends.
Hit Your Target Demographic
As previously stated, different people are looking for different things. You need to pick which demographic you would ideally like living in your house and work on that. For example, different groups of people yield different results in terms of how much you are wanting to get our of your income properties. You won’t just have to look at the type of people (students, families, professionals), but also the longevity of how long they will be staying for. Students, for example, may only be staying there for a couple of terms, meaning that they’ll only be in your property for 9 months at the most unless they’ve signed on for another year. Families tend to stick in the longest, but it’s worth remembering that student properties are usually rented out by the room rather than by the house as a whole which can prove extremely lucrative.
It’s easy to get carried away on works done to improve the property, or to dig your hand just that little bit deeper into your pocket when bidding against someone to secure what you are wanting to by. However, you must remember to take a step back and look at the situation as an investor. If you carry on adding improvements to the house, how much realistically will you be able to get back from it? Those within your target demographic are looking for certain things – you can find out what things by simply asking about or getting in touch with a market research company – most of which are provided by them having four walls, the basics such as heating and running water, and a clear, fresh start for them to be able to stamp their personality on their living space. Respect that and save your pennies.