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Avoid these pitfalls when buying rental property
Avoid these pitfalls when buying rental property
Date: 2017-08-25
While investing in rental property can offer excellent rental returns, there are some pitfalls that you should be aware of.
Be aware, not all properties or areas offer good rental investments and it is therefore vital that you do your homework before leaping into such a vast financial commitment. The non-negotiable rules for investing in property:
Location - Properties in areas with good schools, amenities and convenient access to business and commercial nodes tend to be the most in demand, regardless of the state of the economy.
Affordability - Generally, the more affordable property ranges tend to be most in demand regardless of the economic cycle.
Property configurations - Together with location, security has become a vital requirement for tenants.
Holiday versus residential versus student rentals - Each type of rental is unique. Student accommodation for example might be most popular in two or three bedroomed configurations because it allows for sharing.
Supply and demand - Just because an area has a very busy rental market, does not necessarily mean that it requires more rental stock, especially under weaker market conditions.
Tenant management - Ensuring that you have good tenants who will look after your property and pay their rent on time, is critical.