To get into the real estate property business is a tough decision and problems will increase when you are naive. Investing in real estate property needs money, knowledge of the property world and decision making power. Before buying an investment property one should look at the qualities of it. How much rental income it can produce? Also, one should take advice from the property valuers NSWto know the actual value of it. Here in this blog post, we are sharing the qualities a rental property should possess.
- Generates positive cash flow – A person should buy a rental property which generates the good rental income. Then the question arises – determine the gross and net rental yield of the property it will help you to determine the rental property will provide positive cash flow or negative cash flow. If the property is with negative cash flow means property income is less than expenditure it has.
- One Percent Rule – If the property’s rental income is one per cent or more than the actual market value of the property than it is considered as good rental property. Otherwise better not to buy such rental property. Though this is not written anywhere by most of the investors, agents used to follow this rule religiously.
- Nice location – A good rental property means the property is at a good location. As we know the property is all about ‘LOCATION’. A good rental property is located in a growing market which means infrastructure development, arrives of new companies, more jobs, more facilities overall more and more people get interested in the property. Which means it will be easy for you to find the tenants for property in such location.
- Low vacancy rate – The sign of good rental property is – it’s vacancy rate is low. Buy the investment property whose – demand should be high, supply should be low in the area and more and more tenants want to get the property on rent. This is the positive sign for an investor. An investor should invest the money in such properties. This helps to keep your property occupied.
- Needs low maintenance – It’s an owner responsibility to take care of an Investment property. An investor should buy a well maintained and properly constructed property thus it demands less maintenance and it is easy to do take care of it. Otherwise buying a property which demands more maintenance than it will affect profit margins and later turn into negative cash flow property.
One should take care of these qualities to make property investment business a profitable one. In order to earn more profit one should ask a property valuers nsw before finalising the deal. They know about property market well which property to buy or which not to.
For best property valuation services contact property valuations nsw. we have a team of an expert and experienced property valuers.