3 things to look out for when viewing prospective investment properties

1. Location and neighbourhood

• Examine the neighbourhood: evaluate overall safety and attractiveness of the neighbourhood 
• Consider distance to essential services: determine the proximity to healthcare facilities, supermarkets, schools, restaurants and other amenities that may be valuable to potential tenants 
• Research the local market: understand the local real estate market in terms of the market demand and property values, as it has potential to contribute to the property’s long term appreciation and rental income stability 

2. Physical condition and potential repairs

• Conduct thorough property inspection: identify any signs of structural issues, damage or any wear and tear
• Consider maintenance and repairs: evaluate the condition of major components of the property and estimate the cost of any necessary repairs or upgrades
• Determine future potential of the property: assess potential opportunities that add value to the property, such as renovations and expansions

3. Financial considerations

• Evaluate income potential: based on current local market conditions and historical rental performance, determine the rental income that the property can generate   
• Calculate expenses: estimate operating expenses of the property, including property taxes, insurance, maintenance costs, property management fees and potential vacancies 
• Analyse cash flow and return on investment (ROI): compare rental income to expenses by calculating key financial metrics, such as cash-on-cash return, capitalisation rate and potential appreciation rate
  

By carefully considering these three factors towards your prospective investment properties, you can produce a more informed decision and assess the viability of your investment goals. However, if you are struggling, consult with your nearest real estate agent to gain additional insights and expertise.

Have fun and explore the endless options available to you!