Evaluating a Neighborhood: Finding a Profitable Investment Property
Researching and conducting a detailed evaluation into a property you are opting to invest in is essential. A market analysis should be centered not only on the neighborhood but of the city. The overall housing market could be performing exceptionally but the specific neighborhood you are looking at is doing poorly.
A multitude of factors affect a property that, in evaluating it thoroughly, will determine its potential. A property garners a lot of value by the surrounding amenities offered around it, for instance, how accessible it is to a school, grocery store, park, etc. Easy access to public transportation, major roads and the amenities listed above are an critical deciding factor. The availability of employment is another factor that can create demand for rental properties in the area.
A neighborhood that is economically-thriving will have fewer vacancies. Several ‘For Rent’ or ‘For Sale’ signs can make you question why there is a low demand for rental properties in the neighborhood. Don’t just pay attention to the present condition and value of a property, think about how it can improve overtime. What are the development plans for the future? Will possible new amenities be added in the area to improve its value?
An area that is stagnant in development is not seen as desirable. Evaluating the property and market will give you more certainty that you are making the right decision in your investment. If you are a Canadian looking to buy a house and would like to make significant savings while doing so, give us a call today and The Mortgage Division will help you secure a debt-free mortgage solution at (416)-621-7501.