What one should understand is that when you are buying an investment, you are also investing in a neighborhood. Making a decision on the location of the home is almost as important as the property itself. Choosing to buy in a good location will bring higher rents and increase the long-term value of the property. The following are some tips to consider when purchasing investment properties:
- Crime- Before purchasing a home do your homework and research the crime rates. Everyone wants to feel safe in their own home. Sites such as city-data.com or spotcrime.com will give you crime statistics broken down by the crimes committed, frequency and how your neighborhood compares to the nearest city, state and county. You can also contact the local police department to get a more specific report on the neighborhood where you plan to move. Also, trends in foreclosures, vacancies can also tell you a lot about the area.
- Weather-If you are buying from out of state, you should research the weather patterns in the region so that you have an understanding whether you need to be concerned about property damage or increased expenses due to snow removal.
- Financial Stability- Property values, tax rates, and future development projects can help to determine the long term appreciation of the property in the area that it is in.
- Demographics- Looking at population growth and average income statistics in the area can provide an insight into the value of the property in the long term value of the property. Sites such as http://www.city-data.com/ are helpful finding this type of information.
- Transportation improvements-If there are planned transportation improvements, renters may be attracted to the property.
- Political Leadership-An area that supports strong forward thinking political leadership can increase the value of property in the long run. A city that is innovative, entrepreneurial, or even going through rejuvenation will attract positive business and residents to the area.
Using our experience and real estate knowledge of the local area, Real Property Management Three Rivers can help you realize solid investments with your investment properties.