If you’re looking to invest in property, you are necessarily looking for a long-term investment. Property investment is a long-term way to experience the growth of your cash, because you will be tied into mortgages for a number of years and will need to await the slow growth of property values so that you can sell for a higher value.
Some properties make much better long-term investments than others, however, so here’s how to find the long-term property investments that will grow best whilst you wait:
Understand the Area
When you are looking to buy a property for a long-term investment, the first and most important step is to understand the area. If you are buying in Sydney, Australia,for example, then you will need to determine the trends of the area and how these changes in value may affect your property over the years.
Sydney is experiencing growth in property values, but this is not true in every suburb. Finding a Sydney buyers’ agent who can help you to understand and determine the ongoing trends of different areas is a good place to start in finding the right suburb in which to invest.
Buy in the Middle
When you’re buying a property for a long-term investment, it is very important to consider the aspect of size. 3-bedroom properties tend to always be in demand because this fits with the average size of families. Purchasing a property of this size is thus a sensible move, but the size must also refer to the comparative value in an area.
If you buy the most expensive property in an area, then this will be a bad investment because you will see less growth in value than properties in the middle of the price range. Buying a property that is mid-market will mean that you can enjoy the best growth, and buying in an appropriate size will stop the value from falling too.
Consider the Amenities
When you are buying a home for investment, it is easy to look at just the house and forget that people need to live there. Also, an attractive house that is well placed will increase in value more than a property that is separated from amenities.
If a property has good connections with schools, roads, entertainment facilities and shopping centres, then the property will be far more attractive. As you will be renting the property in the period during growth, it is vitally important that the property is attractive to tenants so that there is always a demand.
Look to the Future
When you’re investing for the long term, it is important to look to the future and consider what may be planned for the area in question. Built-up areas will always undergo changes, and you can benefit greatly from these if you buy in the right place and hold onto your property while developments occur. Sydney is an area that is undergoing particularly positive developments at present and values will increase because of this.
A 5-year project could very significantly increase the value of your home and make your long-term investment more profitable. Looking to the future is not always possible, but plans that are made can make your investment more significant over the years, so it is worth looking.