Investment Property – Buying Criteria for Investment Property

When it comes to property investment, noting beats what the experience can give. However, there are things you can learn in order to build a portfolio in property investing. This article provides the buying criteria to bear in mind in order to acquire property of high performance.

real estate cncept

The location of the property

The value of the property lies on the proximity of the area to places where the working area of the prospect tenants is accessible. For many, the typical location is 15 minutes or less from work.

Capital cities offer great locations since most of the highly paid workers or professionals are found there. You can have renters or buyers like doctors, airline pilots, lawyers, bankers, etc.

Choosing a property in Australia can be for example at inner suburbs like Melbourne. Here you can expect for capital growth and you can have higher rentals.

The neighborhood

Next to location is neighborhood. Look into this aspect and make sure it can add value to the property you want to buy. The next door people can greatly affect your decision or the decision of the tenant to stay in your house.

The building

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The overall look of the building adds appeal to buyers or tenants of the property. When there is a balcony that will make way to a pleasant view to the garden and other scenery nearby, the better the property is.

The security of the property really matters too. The house should have safety and privacy features so many will be enticed to live on it. The parking lot is another thing.

If these things seem not appealing, you can invest more amount for renovation to attract more tenants.

Tenants will live a house with enough space and with a floor plan that is spacious. In most livable houses, the ideal dimension is 50sq.meter.

The condition of the building

The building should be inspected since there may be cracks and rising damps. The system on electrical wirings, plumbing, pipes and gutters should be checked since they are costly to be repaired. These can require too much amount for repair in most old houses. Consider how much you might be spending for such things.

Possible Value to be Added

Try to figure out the parts of the house that need renovation. In most instances, the kitchen and the bathroom need repair or renovation. Figure out how much you will spend to make the house more appealing.


Affordability is the key for the property to be more attractive to renters. Make sure the prospect tenant can afford the rent you will set. You need to think about this before you will buy. Of course, you need to take note that you aim for a positive cash flow. Consult your accountant on this.

These are just some of the many criteria you need to consider before you will spend money for a property you will invest. There are more you need to learn for each aspect; like when you renovate a house and spend for such, what will you consider to repay your mortgage?

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