Despite the recent economic downturn and global tensions from the past couple of years, the real estate market continues to thrive. Business is booming, and many property investors are looking to build their portfolios further. They’re on the lookout for houses, condos, and other buildings that provide them with the maximum return on their investment.
Because of the economy’s unpredictability and the ever-increasing prices, it can be risky to invest in rental properties. Some pieces of real estate are better than others, and it can be challenging to find ones that maximise your returns.
Many factors play a role in whether or not a place is worth the investment, and making the right choice can be highly rewarding. So, what are the signs that a rental property will be profitable? Let’s explore below.
Sign #1: Low Crime Rates
One of the best signs of a profitable property is that the surrounding areas are safe and secure. Nobody would want to live within a disreputable neighbourhood, so it’s crucial to survey the place and do some research beforehand about its crime rates. Vandalism, theft, and other crimes should not be overlooked.
Local police or public libraries should have an accurate record of the area’s crime rates. It’s also essential to note the current trends—whether criminal activity in the vicinity is rising or declining.
Sign #2: Nearby Amenities
People need convenience, and most of them do not want long commutes to buy groceries, visit some parks, watch movies, or go to the gym. Because of this, they tend to look for rental properties that have everything within reasonable reach. If the place is close to many amenities and transportation options, it’s an excellent sign that it will attract renters.
Sign #3: Low Property Taxes
Property taxes can differ depending on the area, and they may significantly deplete your profits or even cause you to go bankrupt. It’s best to talk to the homeowners in the vicinity or check the municipality’s assessment office to get this data.
Some high-tax neighbourhoods are worth the investment, especially in-demand areas that attract long-term tenants. However, some unappealing locations still have unreasonably high property taxes that will definitely not give you good returns. It’s also best to determine the possibility of future tax hikes, such as when the town experiences significant financial difficulties.
Sign #4: Good Employment Opportunities
If the area has plenty of job opportunities available, there’s a good chance that people would want to live there. Check the local library or the U.S. Bureau of Labor Statistics (BLS) for this information. If a big company plans to set up shop near the location, renters would want to live nearby.
Contact a Mortgage Broker Today
Choosing a rental property does not have to be a gamble. There are many ways you can tell that the place can give you an excellent return on investment, such as the ones stated above. Keep these signs in mind as you look for your next big purchase, and know who to call once you’ve made your choice!
Getting the best deals often requires the help of trusted professionals. If you’re looking for a mortgage broker near Mornington Peninsula, Mortgage Broker Home Loans is the place to call. We’ll provide you with proposals that allow you to maximise your savings as you invest in the best property that suits your needs. Contact us for free advice today!