Dunhill Consulting Limited

How to Ensure you get the most out of your Investment Property

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Jumping right in!

An investment property is a property that you buy for the sole purpose of investment with a view to earn a return on investment. It could be a residential property, commercial property, godown, or plot.

The success of your real-estate investment depends on 2 main factors:

  1. Value Escalation: choosing the right property for investment which will escalate in value with time.
  2. Rental Return: Ability to consistently attract and retain great tenants fast and early enough.

If you read my previous blog, then you already know this!

1.Off-plan projects:

  • Buying a property off-plan means that you will be saving some substantial money in your investment.
  • An off-plan investment also buys you time to find the perfect long-term tenant in time for completion of the project! This means you are securing the ultimate long-term tenant early enough to ensure that you do not lose out on any potential rental return.
  • An additional perk is that from the time you invested to the time that the property is completed, the value of the property has already escalated.

2. Accessibility to lifestyle amenities and necessities:

  • When choosing an investment property, you would need to check the ease of access to lifestyle amenities and necessities. For example, for a residential, the property would ideally be located near amenities such as schools, hospitals, restaurants, gyms, community centres etc. This is key to attracting a desirable tenant!
  • For commercial properties, the ideal location would be in a vicinity that is well connected with similar companies, shops, industries etc.

3. Security:

  • For any property, security is a powerful determinant in projecting value escalation and rental returns. A basic need and a crucial factor in many industries especially the real estate sector. So take your time to research on which areas are regarded as ‘safe’ before purchasing your investment property!

4. Connectivity:

  • The hustle and bustle of commuting! At least getting around is made easier if you are close to major public transport avenues, highways, etc. When purchasing an investment property being mindful of what is within the area and the surroundings is important.

5. Rent & Price:

  • The key ingredient - expert advise from someone who has experience in the real estate market of where you are looking to invest. Rent is one of your tenants biggest concerns, similarly rental returns are yours!
  • It is vital to keep in mind that you do not limit your tenant pool and conclude on an optimal rent. This is essentially a deal breaker!
  • Rent and price in relation to the age of the property – most tenants are attracted towards newer properties. The newer the property, the better its ability to attract and secure a higher rent too. The age of the property correlates to the maintenance costs of the property too. The older the property, most likely the higher the costs of maintenance too, which would mean the lower your return on investment.

PS. The price of the property is usually a good indicator of the age of the property!

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