July 25, 2016
When shopping for the perfect investment property, investors have their potential tenants on the top of their mind, new data has revealed.
According to Mortgage Choice’s annual Investor Survey, two out of every three investors will think about their preferred potential tenant and what type of property would suit them when buying an investment property.
When asked what they thought potential tenants would want however, respondents were divided.
“Looking at the survey results, 39.4% of investors said location, including the suburb and street, was the most important thing to look at when shopping for an investment property, while a further 36.8% said strong tenant demand influenced their property buying decision the most,” Mortgage Choice chief executive officer John Flavell said.
“A further 31.4% of respondents said the level of repairs, renovations and ongoing maintenance a property needed would ultimately drive their property purchase decision.
“The reality is it is important to consider all of these factors and more when buying an investment property.”
“At the end of the day, if you want your investment property to be successful and enjoy consistent tenant demand, then you have to buy a property that appeals to tenants and not just yourself.”
Mr Flavell said it is important to note that tenants can and will be picky about what they get in return for their rent.
“There are always some ‘must haves’ when it comes to buying a tenant friendly investment property,” he said.
“Location is a key driver when selecting an investment property, so aim for the best location that you can afford. A property offering good transport links and proximity to outlets such as shops, restaurants, parks, schools and even hospitals is ideal.”
According to Mr Flavell, buying a safe and secure premise is essential. “In the same way you want to feel safe in your home, you want your tenants to feel safe in theirs,” he said.
In addition to a secure premise, Mr Flavell said easy access to available parking is also a must have. “Believe it or not, off street or undercover parking could add value to your property and attract a wider range of tenants,” he said.
Mr Flavell said ample storage is also a plus for tenants. “The more storage you have, the more likely your tenants will be to stay for the longer term. Further, plenty of storage facilities could also help to ensure that the property remains well-kept,” he said.
5) Low maintenance
And while good amounts of storage can help a place to remain tidy, Mr Flavell said investors who purchase a relatively low maintenance property will also ensure their dwelling remains well-kept by potential tenants. “Properties that can be easily and cheaply maintained are more likely to enjoy high tenant demand as renters will see that the property’s upkeep won’t monopolise a lot of their time,” he said.