While proximity to family and friends and property features may be most important when buying your family home, there are a number of other considerations that need to be made when purchasing an investment property.

Before committing to an investment property, consider the following factors that can impact the success of your investment.

Overall investment goals

There are many different ways to invest in real estate, from single family homes to industrial buildings. It is therefore important to consider your investment goals when choosing which suburb and property to invest in. Your investment goals will also help you decide how much you are willing to spend and whether you are willing to consider properties interstate or if you are looking for local properties you can manage yourself.

Demand

It is important to consider the demographics of the area you intend to invest in. Are you targeting young couples, families or students? This will give you a good indication of the type of properties you should be looking for. Young couples will probably be looking for units close to major cities, while families are often looking for houses in the suburbs that are close to schools and other amenities.

Tenant friendly

To ensure your investment property is tenant friendly, it is important to consider how close your property is to amenities such as public transport, schools, shops and cities. If the area you are looking to invest in has a number of these amenities close by, it is probably going to rent quicker and stay rented for longer, helping you reach your investment goals sooner.

These considerations will give you a good indication of the suburbs and properties you should be looking at in order to achieve your desired investment outcome. Once you are clear about the type of property you are looking for, have an idea of the area and your affordability, get out there and find them.

Courtesy of Lending Services Victoria

Selecting your perfect investment property