REAL ESTATE Tip- Features of a Profitable Rental Property
by EvancouverRealEstate
If
you’ve recently started your search as an investor looking for a
profitable rental property, you might have started to wonder: without
having the ability to rely on historical and proven information about
the worthiness of a home as a rental income property, how might one
decide on where to place their investment? If a home has never been
rented out before, how can I know whether it will make for a good rental
income property?
Well,
luckily there is additional research you can put into action – when
doing so, consider these universal features of a profitable rental
property.
An ‘Up and Coming’ Neighbourhood
Purchasing
in the right neighbourhood at the right time can be one of the best
scenarios when it comes to making an investment in real estate, and is
surely every investor’s dream.
Accomplishing
this is all about conducting your research and being able to spot
trends in the market before they become overly obvious to the general
public. Which areas are changing? Which neighbourhoods seem to be
becoming more popular and intriguing to the public? Have your realtor
provide you with the details, and then take it upon yourself to explore
the neighbourhoods that are on your radar.
Zoning and Future Developments
Often
pinpointing an ‘up and coming’ neighbourhood is accomplished by
considering the zoning of the area as well as any changes to such that
might be taking place. If zoning changes have been proposed by
developers, and are either approved or pending, this can be a major hint
towards future development and overall change in the area.
This
is often a key piece of the puzzle when trying to envision the
neighbourhood in its short-term and long-term future. Ensure to utilize
your foresight and have conversations with your realtor about how the
future developments can positively affect the neighbourhood or
negatively affect the particular property.
Property Taxes and Rental Income
Finally,
make sure you don’t leave out factors like property taxes when trying
to ascertain which areas make for the most lucrative rental incomes.
Check out the property taxes and deduct them from the average annual
rental incomes for similar homes. How beneficial is one area over the
next when looking at the cold, hard bottom-line figures?
Looking at a home that has a history as a rental income property? Here’s what you need to avoid getting burned.
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