Which type of property is best…?
If you are thinking about buying an investment property, there are a lot of considerations. The first of course is whether you want to buy in the commercial or in the domestic property market. If you want to make the most of your investment in terms of gaining the highest ROI possible, you will want to choose a property in the domestic market.
By choosing between apartments that are ideally located close to towns or places of interest (which draw tourists), you can be sure that there will be a ready market ongoing for serviced accommodation rentals of your investment property.
Focus on the costs
You will want to find a property that does not need much investment to make it rentable – remember that all costs add up, so you also do not want to spend more than necessary on the basic furnishings. If you have a choice between an empty 1-bedroom investment property and one that is fully furnished, there could be a benefit in taking the furnished unit. This would allow you to start renting it pretty much straight away, after advertising on places like Airbnb.
Leasehold properties are something which should be considered very carefully since the leasehold might expire in a short time frame and that would make any investment untenable. If possible find a leasehold property with more than 100 years left, or a freehold property.
Units of different sizes can gain ongoing rentals on the serviced accommodation market, but more often than not the guests will be looking for one or two-bedroom units. By considering the end user, i.e. your target guest, when you choose an investment property, it can pay off greatly in the long run through ongoing rentals and word of mouth advertising.
What will people want?
Choosing units that are located near transportation such as bus or train lines allow for a greater number of guests to consider renting your property and can ensure that there is a consistent market for turnover. The best type of investment property to buy is one that people will want to rent, it is as simple as that, so put yourself in your target guest’s shoes and think about whether you are looking at a place that you would be willing to stay if you were in a different city needing a serviced accommodation.
If you would like our expert help to get started just sign up for a Discovery Day here and you can learn our 8 step system, see our latest case studies and ask us questions.