If you’ve ever tried to manoeuvre your way through a minefield, then you have an idea of what investing in property is like. It’s full of risks, difficulties and disguises at every turn. But the rewards can be great, and with the right manoeuvring, you can make your way out of that minefield and into a fruitful and successful investment.
If you’re like so many entrant investors, you’re probably already boggled by how many contradicting things are being said about finding success in property investment. What you need to know is that in the end, there are just four pivotal elements you need for secure property investment. With these four, your chances of going through property investment unscathed and successful will be a lot greater.
Like a solid house or sturdy table, property investment has four pillars that keep it solid and standing, even through the toughest times and markets:
Prime Location – Location, location, location. That’s what everyone in the real estate business keeps repeating, and rightly so. Location is one of the most important factors that can make or break a property investment.
Location here means more than just the aesthetic or physical attributes of the location of the property. It encompasses the property’s proximity to numerous conveniences, like schools and central business districts. It also means a good and peaceful neighbourhood, one that’s free of crime, natural disasters and the like. Such a property will always attract interest.
Solid Construction & Excellent Design – While location may be important, the structure of the property itself is also equally important. A rundown shack placed on the most exquisite location is still a rundown shack. It is vital to ensure that your property looks and is at is best. Good, solid construction combined with an attractive yet sensible design make for a winning real estate combination that buyers and renters will find hard to resist. If achieving this means spending a little more on construction and renovation, go ahead because this is one aspect you really shouldn’t scrimp on.
Functionality – Similar to people, property should not only have the looks, but the substance. They should not only be attractive, they should also be functional. This means that they should possess the qualities that fit their purpose: residential properties must be conducive for living and buildings and offices should be conducive for working. Buyers and renters may be attracted to the exterior of a home or building at first, but it is the usefulness of the space that really wins them over and makes them want to stay for good.
Financial Stability – Start off having the means to finance your investment property, don’t rely on returns alone. Demand for property can be very unpredictable, and you never know what other problems could come up that will add to your expenses. A pipe could suddenly burst, or an earthquake might suddenly shake your property’s foundation. You need to have the finances to face these kinds of emergencies and solve them, because returns alone will not cover these and pay for the property at the same time.