What to Avoid When Purchasing Investment Property

As important as it is to know what you want in an investment property, it is equally important to know what you do not want. When you are making a buy-to-let property purchase, choose properties that will appeal to prospective tenants so that you can get them rented and begin generating income as quickly as possible. Here are some things you may want to avoid—or at least carefully consider—when making an investment purchase:

Noise! While it is important to choose a property that is convenient to transportation, shopping, and entertainment, your tenants will want to enjoy peace and quiet in their homes. Be cautious when considering properties near airports, train stations, and even pubs and nightclubs. Remember, close and convenient is good, but there needs to be sufficient space between your property and noise generators so that your tenants are not disturbed.
Small, cramped, and dark rooms that will likely depress your tenants and cause them to move in a short time.
A close-by major road. In addition to the noise factor, families with children may see the traffic as a safety risk to their youngsters.
Dirty, rundown areas that might make your tenants feel vulnerable.
A flat above a retail food outlet. Your tenants will not want to be constantly smelling the food and the rubbish that surround restaurants. Also, food outlets may attract rodents and other pests that could then infest the flat.
Any property in an area with a high crime rate.
A unit with the garage block at the end of the garden or down the side of the property.
A residential property located in a primarily commercial area.
A property at risk of flooding.
Properties with open rear access.
Properties on or near sites that may be of environmental concern, such as incinerators and landfills, or properties with other potential environmental hazards such as radon.
Properties immediately adjacent to schools. Near schools is great for families with children, but right next door can create problems with parking, toys and other clutter, and even trespassing.
Properties that require consents of any kind for improvements or maintenance that may prevent you from maximizing your investment potential.
Properties with serious structural problems that may be time-consuming and costly to repair.

While it is fine to set high standards, you should also be realistic: If you wait for the perfect property, you may find yourself waiting a long time before you invest. You may find a property that is ideal except for a few of these elements. You must then evaluate the advantages and disadvantages of the unit before making your purchase decision.

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