Real estate investment is a double-edged sword. It may result in massive returns and extensive losses, and anything in between on the financial spectrum. For many, the possible profits outweigh the risks. If this applies to you, and you are a beginner, it might be a good idea to consider consulting a real estate investment firm like the one run by Paul Daneshrad. Regardless of whether you do or not, it is important to inform yourself about basics, such as what makes a property a good investment. There are certain traits that make some buildings and patches of land more attractive to buyers and/or renters, and thus more likely to pay off in the end.
1. Low Crime Rate
The crime rate in the area you are interested in may majorly impact the amount of interest you are able to attract in the future. People want to feel that they, their families and their possessions are safe and secure. Frequent criminal activity might be discouraging to those looking for a home. A low level of crime in a development or community makes it more appealing as a place to live in.
2. Good Neighborhood
Another factor that can severely impact real estate’s overall value is the surrounding neighborhood. The “right” atmosphere, appearance and community vary, depending on the kind of tenants/purchasers you wish to draw in. However, in general, a clean, friendly, peaceful environment is good in terms of investment.
3. Public Services
Easy, close access to well-maintained, decent quality public services and amenities also boosts a property’s desirability. Examples of community resources individuals may research when deciding on a new home include libraries and parks. For those with young children and/or teenagers, public schools with good reputations are very important, as is proximity to said educational institutions.
A place’s potential for community and personal development also plays a role in determining how profitable a real estate investment is. Locations where the job market is healthy in terms of variety, upward mobility, availability and pay are more likely to bring people in than one where it is dead. Possible future development around the locale you are checking out may be good or bad. On one hand, it may bring life and jobs to the area, spurring growth of the local economy and bringing in a tide of newcomers. On the other hand, new housing may end up becoming competition for you.
These are not the only things you should take into account when considering real estate, simply a few basic ones that might raise a property’s profitability. Other factors like property taxes also matter.