Buying Investment Properties with Tenants in Mind

buying-investment-properties-with-tenants-in-mind

When you buy an investment property for rental purposes, do you normally follow your gut, heart or head? Benjamin Kingsley, current chair of Property Investment Professionals of Australia said that you should use all of it as long as the prospective renter’s best interests are in mind.

This is because many investors are seduced by inferior property since they are thinking about purchasing a bargain instead of buying a solid investment property like the houses for sale Brisbane that a tenant actually wants to rent. Think about your target market and buy properties with features that renters demand.

Location. Location. Location. Always choose to buy a property close to the amenities that your target demographic needs, such as public transportation, shopping centers, and other recreational areas. Places that have a natural feel to it while still being near the CBD are a huge hit to renters.

Schools are also a major selling point. It’s common for families to rent a property in a school zone to get their child into good schools. If you want a family with school-aged children to occupy your rental investment, buy it near a school with a good NAPLAN score.

Roomy indoor and outdoor space. Properties with an outdoor area offering an al fresco living or an additional area for kids to run around and play are preferred by families as well. However, ensure that any gardens falling within the tenant’s responsibility are low maintenance. You wouldn’t want them complaining about withering plants or seeing beautiful fauna go to waste.

Lifestyle destinations. Most young professionals renting apartments or units generally want to live in properties that have quick access to bars, cafes, or the beach. They may not be able to afford to live in a house in their desired area, but they can definitely afford to rent there and have access to various lifestyle destinations.

Parking spaces. It’s very frustrating to drive to get your shopping, only to be forced to park blocks away from your house and still have to lug the shopping home. A property with a designated parking space, in this sense will generate bigger rental demand. Most houses for sale Brisbane have ample of space that can be used as a parking lot. Check it out.

Necessary internal extras. Nobody wants to leave their living space just to wash their pile of dirty clothes. Going to the communal laundry with basket in-hand is such a drag even for you, so consider adding a washing machine inside the property. Your tenants will appreciate the thoughtfulness of having an extra feature in their living arrangement. Why not throw in a dishwasher too? These extras will increase the rental desirability of your property tenfold.

Renter frequently asked questions.

  • Are bedrooms big enough to fit a queen or double bed?
  • Is there a toilet separate to the bathroom? Are there enough?
  • Is there a storage space?
  • Does it have multiple living zones?
  • Am I allowed to decorate the space without penalty?
  • What about policies like guests and listing on sites like Airbnb?
  • Are pets allowed? If yes, is there a fee?
  • Are there quiet hours or fees for communal spaces?
  • What happens when there’s a maintenance problem in the apartment?

There’s more, but the list above sums up most of the concerns a tenant may have about renting the property.

Now that you’re about to start buying properties with tenants in mind, you’ll have a better chance attracting quality ones and making them stay longer. Best of luck!

Making the Transition from Renter to Homeowner

Wherever you read about the benefits of buying a home, it’s almost only ever described as a being ‘better’ than renting. However, while this is true in most cases, it does not mean it’s the perfect solution for everyone. There is a lot to think about, from finances through to hiring attorneys, and the truth is that sometimes buying a home can lead to disaster. Here are the key concepts you need to consider if you want to make the transition from renter to a homeowner as smooth as possible. 

Comparing the money

First of all, it’s worth thinking carefully about how much you pay for rent and how much you will pay for your mortgage. In most cases, due to the rising costs of rent, a mortgage will be cheaper. But it isn’t necessarily the case. A mortgage loan officer can help, of course, as can a financial adviser. But just because you can afford to pay a monthly rental fee, doesn’t mean you will be eligible for a similar mortgage rate. Ultimately, the decision will be made by your mortgage advisor on your income and your credit rating.

Check your credit

Before you start looking into buying a home, check your credit rating. It is one of the primary things that mortgage providers will use to determine your mortgage eligibility. Some lenders are more flexible than others, although you may find you end up paying more in interest. Again, check your figures and make sure you can afford the payments.

Understand your responsibilities

One of the biggest shocks to the system of becoming a homeowner is that everything is down to you. If anything goes wrong with your heating system, you have to pay – there is no relying on a landlord. It catches many new homeowners out, so preempt any situation and ensure that you are building up an emergency fund.

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Insure everything

Another way of reducing the costs of emergencies is to use insurance. Understanding homeowners insurance is the first step. You should also insure your critical household functions – it will lessen the impact of any nasty surprises. It will also allow you to plan a lot better, and work out your fixed monthly costs. Of course, these extra expenses will soon add up, so you need to consider them to your total outgoings when comparing rental rates.

Furnishing your home

Another cost to think about is furnishing your home. Again, it’s important to include this in your home buying budget – especially if you currently live in a furnished property. Beds, storage, cupboards can all cost a small fortune. Plus, of course, you may need some money for doing renovations. It’s rare to buy a home that is just perfect for your needs. Often, you might want to refresh a tired looking bathroom or kitchen. Unless you are happy to make do for a while, it’s something you will need to save up a significant amount of money.

As you can see, there are plenty of things to think about when making the transition from renter to homeowner. In most cases, it will be worth it – but make those financial checks beforehand to ensure you can afford it.

 

Strapped For Cash? Here’s How You Can Make Money From Your Home

There are some times in life when we can all do with a bit of extra cash to get us through till our next paycheck. But what happens when you have exhausted all of the usual options, such as bank loans and overdrafts? Well, you only have to turn to your very own home to find some more money. There are a number of ways your home can get you money when you need it. Not sure how? Here are some handy ways to make money from your home.

 

Refinance Your Property

Do you think you are now at a point where you are able to reduce your mortgage’s interest rate by 0.250% or more? If so, then it sounds like you are in a good place to refinance your property. And this can help you release a lot of cash that was tied up in your home. Once you do refinance your property, you will be saving a lot on your mortgage repayments. And this can ultimately have a lot more spare cash left over at the end of the month. If you are interested in refinancing, you can find out more on websites like www.calmtg.com/refinance/.

 

Rent Out Your Spare Room

If you have a spare bedroom in your home, you could make a nice little sum of money from renting it out. You could list it on sites like Craigslist if you are interested in finding a permanent lodger. Getting a lodger is a great way of securing a steady monthly income from the rent. But if you get someone who you don’t get on with, you may end up stuck with them! If you’d prefer not to rent your room on a permanent basis, think about using AirBnB to advertise it to holidaymakers. This way, you only have to rent it out for a few nights at times that suit you.

 

Turn Your Home Into A Movie Set

There are lots of location agencies who travel up and down the country looking for new sites and locations to shoot films and TV shows. If you are interested in offering your home, you can sign up on one of the agencies’ websites. You will get more money if your home is used for a movie rather than a TV show. But there is still plenty of money from TV programs, so don’t dismiss them just yet! Take a look at location agents’ websites for more information: www.shootfactory.co.uk/.

 

Sell Your Home’s Clutter

When was the last time you cleared out your wardrobe or cupboards? If it’s been a while, it might be worth going through one soon. You never know what you might find in there! There could be plenty of things that you can sell on eBay. If you find a lot of old belongings that are still in good quality, you may even want to hold a garage sale. You could be surprised at how much cash you make through selling your old things!