5 Amenities to Look For While Investing In a Real EstateAre you a first time home buyer or a first time real estate investor? If yes, then this article is for
Usually, first time buyers or investors are a bit lost when it comes to describing the qualities
and features of their ideal real estate property. Therefore, to make it easy for your real estate
agent it’s important that you list down and describe the features, qualities and amenities you
are looking for in your real estate property.
In this article we’ll be discussing the major top 5 amenities that you should consider before
investing in real estate property.
Location is the main aspect that is to be considered when investing in real estate property. The
greater the location, the greater the number of investments. The location of your real estate
property would define the total quantity of rent it would generate, the quality of renters it
would attract and how long your renters would rent out your property.
A great locality with lush green greenbelts, security, quality educational facilities, top notch
healthcare facilities, transportation, recreational spots, commercial hubs and markets along
with an uninterrupted supply of basic amenities such as water, power and gas increases the
worth of your real estate property.
Also, another factor that enhances the worth of a real estate property with respect to location
is security. If the location is safe and secure, then eventually more prospects would be
interested in buying or renting out your real estate property. Hence, it’s important that you
thoroughly research and survey the location to get to know whether the crime rate in the
locality is high or low and then you can plan your long term goals accordingly as now you would
have a little insight into the locality's crime rate.
Remember while purchasing a real estate property from a business perspective it’s crucially
important that you don’t give into your emotions while making important decisions. Always
remember that the property you are investing in is your income property and not the one that
you would personally use. Therefore, remain emotionally intelligent when making the buying
Yes, yes. You got it right. Here the numbers mean the total amount of cost that you’d be
spending over the property such as the purchasing price, property taxes, renovations etc. In
short, develop a solid financial strategy before making any investment.
While playing with numbers, it’s also important to note here that if the locality in which your
property exists has high rentals does not, I repeat does not mean that your cash flow would be
increased. Hence, it’s recommended that you thoroughly go through the total expenditure and
calculate whether or not your rentals would help you cover up the investments you made
Most of the time, real estate properties with less investment and moderate rental prices tend
to generate more profit.
Invest In Low Maintenance Real Estate Property
Always invest in real estate property that is low maintenance. Usually, income properties such
as vacation homes, student hostels etc. are high maintenance or real estate properties in low or
mediocre areas that are in critical conditions, no doubt such properties offer a great return on
investment but also require a great deal of work from your end.
Low maintenance real estate properties are those which appeal and attract reliable and long
term tenants. Moreover, low maintenance real estate properties won’t be much luxurious but
rather lucrative, strong and steady. Also, low maintenance properties aren’t the most attractive
real estate properties in the market and that is perfectly fine.
Another thing to keep in mind while seeking out low maintenance real estate property is to
make sure your property is near you. If you won’t be hiring a property manager and would look
after the property yourself then location of your income property becomes a key player.
Because, flying out or driving to your income property every now and then for maintenance
purposes would become a pain itself. Hence, it is preferred that income properties should be
bought in localities / areas close to your residence.
Potential to Appreciate
In income property, value is considered as appreciation. As an investor, there are two points
when you would get appreciation. First is when you purchase the income property and the
second is when you sell your income property further.
After purchasing the income property, potential appreciation can be gained by doing little
renovations and touch ups here and there over the property and then analyzing how much
those few minor changes have increased the rental value.
The second point at which your income property’s worth is determined is when you sell it
again. After purchasing and holding the land, increase the worth of your income property. As
the worth of some localities / areas is always fluctuating.
The potential to appreciate an income property also increases according to its location. If the
income property is located within a large, secured and gated community that is further planned
to develop and enhance with more amenities would definitely increase the value of your
Smart, Through & Through
Just as in any other business, smart work is more valued than hard work. Similarly, in real estate
business, working smartly can lead you to great and steady investment. If you aren’t working
smartly then the chances of getting into high risk scenarios are increased. Therefore, smart
work means that you hold your income property long term. Long term rentals are not only
smart but also normal as it generates a steady cash flow while decreasing the chances of high
In the real estate industry, normal or smart means practical. A practical place or house is a
decent place where a family could reside. Example of a practical and decent place is a single
family home with three bedrooms, two baths, located centrally with easy access to quality
educational institutes, top class health facilities along with vast employment opportunities.
Apart from this, in income property or rental property you also need to fulfill the demands and
needs of your targeted segment. If your targeted segment is for example students, young
professionals etc. then the layout of your income property should be kept open so that your
young tenants can arrange the space according to their needs and if your targeted segment is
elderly or retired community then your income property must not have stairs.
Bottom line of holding to rent real estate investment is sticking to the basics. Although sticking
with the basics is neither attractive nor exciting, long term success is guaranteed.