When you are planning to purchase an investment property it can become incredibly complex doing your homework. You have to decide on a builder, on a design, there’s council approvals to navigate, land works, property managers, finance…
The list seems never ending.
And then of course there is the all important question of where to actually look for land. So in order to help you make this decision without becoming overwhelmed, let’s look at this from the point of view of the potential tenant.
Is there work in the area?
What are the options for jobs local to the property? Are there shopping centres, hospitals, universities, industrial areas, factories nearby? Or is there easy access to work via a short commute? Is the type of work available likely to continue for 10, 20, 30 years or is it booming at the moment but unstable?
At the end of the day your tenant needs to be able to pay their rent, and so while an incredibly cheap block of land that’s in a remote area might seem appealing due to the low investment required, that’s not helpful if there is nobody willing to live there because it’s too far from their place of employment.
Would you live there?
What is there to do in the area? What kind of local infrastructure exists? What are the schools like? Is the property surrounded by lush greenery, creeks, hiking trails and other natural wonders? Or is it close to all the action of the big city? What kind of community is present in the area?
Also consider the future for an area- if there are big plans in the works for building new attractions, infrastructure, or communities then it could be a great investment opportunity to purchase land in the area.
Consider what would make an area appealing for choosing to live there, and stay there long term. Again- if you have a beautiful home on a lovely block but there’s absolutely nothing around for miles, this may not appeal to a wide range of tenants.
What is the track record like?
What are the vacancy rates like in the area, is there high enough rental demand that a new property is feasible? Are properties growing in value in the area? Is average rent increasing over time? This are all indicators of whether the area is attracting new residents, whether they are wanting to stay there, and whether the suburb is experiencing growth.
If you want to find out more about a particular suburb you can view our current listings for investment properties in SE QLD and download the info packs which include detailed suburb profiles here>>
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