Selecting property as an Investor/Landlords: This process is somewhat involved based on your objectives. As noted in prior postings the type, location and features are all something to take into consideration as is the value and price points of the property. Here we will try to address selecting property based on price point.
When considering an investment property you will want to consider the sales value you want to stay within as well as the rental values you are hoping to obtain. These somewhat work hand in hand along with location, features, age etc. Included are just a couple examples to consider when prospecting for Investment property. So what you have to think about here is what are your long term plans as to this investment and what type of returns are you looking for to make your goals and objects become obtainable.
Are you looking for retirement income, subsidized income, appreciation value, or just looking to add to your current asset value overall etc. Each of there areas will dictate what you need to do to obtain the objectives and goals you have set.
One of the 1st items to consider will be the sale value of the property and is it going to get you what types of return your are looking for long term based on your needs etc. Always keep in mind becoming and investor or landlord is more of a long term commitment (3-10 +) years not something short-term.
Here is some data to use in your selection of investment property. If you were to purchase a property for $100,000-200,000 and this property was either a one, two or three bedroom unit, each would dictate a different sales value. But the range for this sale value could be anywhere from as low as $700 to as high as $1500 +/- depending on size, location, features and age of product. Keep in mind the newer or renovated product will always secure a higher rental value along with the properties location. Now lets say you are looking to be more in the $2000-2500 +/- rental value range, this would be more of a sale value of $250,000 to 350,000 +/- range etc. Again keep in mind all rental values are subject to age, features, location etc., and can vary widely. *Always consult with an expert.
When it comes to selecting investment property value has to always be one of the main considerations as if a property is prices over what the product, location etc., will bare then this will be a losing proposition now and down the road. When in doubt always consult with an expert so as to make sure your investment turns out to be a rewarding experience and not a losing one.
These are just a few things to consider when selecting property based on value and many other factors will need to be considered before making the final decision.
Stay tuned for additional postings on this topic and many others in the weeks/months to come.
Also, if you have a topic or question(s) as a Landlord or Tenant you would like to ask feel free to send us a response and we will do our best to address it in a future blog.