There are different types of investment property choices available for a potential investor. When selecting which type to chose, the rule is simple: for the investor to make sure that the investment type meets his goals, his preferences, and is practically based on his financial capability.
Types of Property for Investment
Land is constantly a very good investment, more so if it is strategically located. Tenants always give high value to properties with an ample space to park a car or two, a backyard, a playground, or perhaps even a garden.
Units in Small Blocks
This type of property is very popular, in particular to single tenants. A unit in a block with a few more units is very ideal.
Units with More than One Bedroom
This type of property is becoming very popular, especially for the young professionals. Young professionals are attracted to these types of properties for the reason that they love the idea of living under the same roof, but retaining a little privacy by having their own rooms. Most share their living expenses, including the rent.
Simple Units with Basic Amenities
There are tenants who are not willing to pay extra for added amenities, and so the best type of units for them is simple units with the basic essentials such as individual laundry. For this type of investment, go for older unit blocks as this type of property will be cheaper to buy and can therefore be rented out more inexpensively.
A house with three or four bedrooms, and a backyard, will most likely attract a long-term tenant. These are normally young couples who can not afford just yet to enter the property market themselves, or would prefer to pay rent in an area they can’t afford to buy in at the moment. If you want security in your investment, then this is perfect for you. In securing a tenant who wants to stay in your property for the long term, you are actually circumventing the risk of having to cover your loan repayments without rental income.
Government Subsidized Housing.
Investing on properties whose rents are subsidized by the government for tenants with low income can be a goldmine for investors.
However, there are specific concerns regarding the type of tenants of this kind of housing units. Generally, tenants who are recipients to this kind of government assistance are unemployed, and are deemed to be less likely to take care of the property. And since they are unemployed, they are most likely to stay in their homes most of the time, increasing the wear and tear of the property.
Whatever the type of investment you choose, just be sure that it fits your investment strategy, and it meets your personal goals and preferences.
How Will You Find the Ideal Property for Investment?
There are many ways to find ideal properties for investment.
Through the Banks . Some successful property investors have found their best investment properties through seeking out sales of properties where the owner has defaulted; and either the bank, or another lending authority, is selling him or her up to recoup what they can of the mortgage left owing.
Through the Local newspapers. Some advertise for such pending sales in local newspapers.
Through Real Estate Agents.
Or you may contact landlords directly and ask if they are ready to sell. Be watchful on signage’s that announce a sale or a bargain.
You can finance these investments by applying for a home loan. You can negotiate with your broker or banker so that you will be able to get the best home loans options that suits you.