When assessing whether your potential purchase is a good investment vehicle you should consider various factors. Here are our top 6 things to look for
- Does it provide a minimum yield after all monthly expenses are deducted (typically a minimum of 5% is now considered realistic)
- Is there potential for above market equity growth, either due to reduced sale prices or is it an as yet undiscovered area with better than average improvement possibilities.
- Is there a suitable mix of residential, retail and offices nearby to sustain demand for rental property.
- Is the site near to main roads for access - buses, trains, motorway, city centre etc
- If I did need to sell the property, how easy would it be in a more testing market.
- Seek local advice as to the current market, demand for rental and sale, and how the area is expected to develop in the next 1 to 2 years.
