3 unorthodox things to consider when buying an investment property
There are so many ways a property could rise in value. From coming infrastructure improvements to the potential for alterations and additions, knowing what to look for to make sure your property is profitable down the line is crucial before you start perusing the different property investment loans out there.
While these might seem obvious, did you know there are a variety of factors that are a little bit off the beaten track that many people don't consider? While these might seem odd at first, they can very well have the same make or break effect on the success of your investment as the more standard ones.
Natural disasters
It's no secret that Australia is prone to the occasional natural disaster. Flooding, bushfires, tropical cyclones – the risk of these varies from state to state.
The added cost of insurance for a property especially susceptible to these can eat away at the profits you would otherwise reap from your property. So do your research on the vulnerability that the particular area in which your property sits has to various natural events before making any decision.
What's the coffee like?
Having a cuppa while doing research for your investment home loan might seem counter-intuitive, but it can actually provide you with insight into whether this particular neighbourhood is on the up and up.
Think about things like how many cafes are around, and whether they're full. Is there a happening atmosphere in the area? And what kind of other shops and eateries are nearby?
Architectural consistency
Have a drive around the neighbourhood. What is the predominant architectural style? While neighbourhoods with traditional styles like the classic Australian Federation are unlikely to lose their lustre in the near future, more faddish styles such as Greek revival or post-modern have a higher tendency to fade in popularity as tastes change.
Also, keep an eye on whether the property you're looking at fits with the overarching style of the whole neighbourhood, or it could drop in value.