Buying Your First Investment Home

Rental properties have always made for a good investment. The demand for housing is growing with each passing day and in most cases, even a modest real estate can be turned into a real catch with nothing more than a couple of simple upgrades. But, in some instances, the amount of money and effort you need to put into renovation just renders the whole purchase worthless. Let us, then take a look at some of the tips that should help you to make sure your first investment home has a good upgrade potential.

Research your future tenants

Looking for tenants can be done in two ways – you can either try to reach a broad appeal, or you can buy/adapt the property to fit some specific demographic. In the latter case, you should check if the property you are considering capable to be upgraded to satisfy the following needs:

  • Millennials – Sustainability, home automation, pet-friendly, entertainment options
  • Families – Open-floor kitchen, kids’ rooms, ample storage options, well-lit interior space
  • Retired couples – Ease of access, walkability, pet-friendly, low-care maintenance, good soundproofing
  • Nomads – The visual appeal, functionality, sustainability, low upkeep costs 

Put the focus on the “wow” rooms

kitchen

The “wow” rooms are, of course, the bathroom and the kitchen. If we take a look at Australia as a pristine real estate market, we can see that refitting these two rooms at the same time has the most positive influence on the market value of the property. So, make sure that you are at least allowed some room to play with. In terms of upgrade potential that would be quality tile-work, the abundance of natural light, ample square footage, good pipe layout, and ventilation. Cabinets, lighting, and other fixtures can be later adapted by you. 

Ask for a professional help

Since you are buying your first investment property, it is safe to assume you don’t really have your finger on the pulse on the market. If we once again look for an example in Australia, we can see that a professional property buyers agent in Sydney has a fair share of clients with investments in mind. That is only natural. These people have years of experience and great knowledge of the properties that aren’t necessarily discussed or marketed in widely accessible circles. The benefits you’ll get far outweigh the expenses which you are going to make.

Pay attention to the floor plan

The layout of some properties may appear very deceiving. For instance, older houses have needlessly large corridors – space that could be much better used to make surrounding rooms more functional. Things like these are very hard to notice if the property you are inspecting is currently empty. That is why you should always ask for a floor plan that would give you a better insight into the actual state of the house. Remember, you should always look for a layout that allows you to play with an open floor-plan. 

Inspect the structural integrity

house

Structural integrity makes an essential consideration if you want to make some more extensive remodeling work like adding an additional room or even a second floor. The first thing you should do is to look for any signs of damage and crack in the walls and foundation, as well as check the sloping of the ground. Also, pay attention to the angle of the walls. If you notice any of the problems, future upgrades will most likely be too expensive to bother. Still, the structural integrity engineer should always a final say in these matters.

We hope these few tips will help you to find the property that will make a good foundation for all of your future improvement works. The real estate market has always been open to newcomers. Still, the level of success you will eventually have will largely depend on your judgment and ability to recognize a good opportunity.

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