Property investment is one of the best investment options out there, if not the best. Billionaire and philanthropist Andrew Carnegie argued that it is the best way to both get rich and contribute to society is by good property investment.
Despite its excellence, not all property investment is beneficial. To some extent, the investment can be disastrous if it does not qualify for a good one.
Ideally, a good property investment delivers a passive return in the future in terms of capital growth and rental income. That being said, what is the qualification of a great one?
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Location
Many investors agree that location determines the quality of this type of investment. A lucrative location promises a quicker and growing return while a diabolical one leads to declining income.
To pick a perfect location, a property should possess effortless access to school, public transportation, and facilities, market and shop, as well as recreational centers. Moreover, it is of importance to examine the population growth of an area to predict the prospective markets.
However, investors often invest in a property near a single income generator, for example manufacture. Experts consider this a risky idea for, if the industry happens to stop, the value of the property will exponentially decrease.
Cash Flow
Another important thing to consider is the cash flow of a particular area. If the cash flow is notably slow or moderate, it might take forever to even get a return.
One of the ways to foresee a rapid cash flow is by investigating the residents’ consumption rates. If the majority of the residents happens to unwillingly spend their money to purchase goods or services, it might result in an unfruitful investment.
Property and Market: Research and Trends
Prior to investing in a property, it is always a wise attempt to conduct research on target property and market. Among the factors to observe, trends are highly salient.
Trends fluctuate over time and they heavily influence the promising property and market needs. To negate the gravity of trends is to project one’s naivety.
For instance, a decade ago, suburbs were never a priority to establish such an investment. However, a recent trend, Hipsturbia, suggests that suburbs will most likely become the leading market in the investment.
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