If you are looking to branch out into property investment then choosing the right property is essential to provide a good return on your investment. A pre-purchase rental property inspection can help ensure you aren’t buying a dud.
Buying a rental property is different to buying your own home
Buying a property as an investment is not the same as buying a property where you intend to live.
When you are buying a rental property you need to look at the property through different eyes.
Key things to think about include:
- Is the property is in an area that will appeal to potential tenants? Houses near schools, transport and shopping malls are good bets.
- Will the property appeal to a wide range of tenants? If you buy a very small or very large home you may limit the type of tenants you attract. A 2 or 3-bedroom property may be a good middle ground.
- Is the decor neutral enough to be attractive? For a rental property, neutral colours on walls and carpets are a safer option. If the decor is more personal you might need to set aside a budget to tone it down.
- Will you be a hands-on landlord or do you want to leave things to a property manager? If you are planning to manage the property yourself you might want a more modern place that will theoretically need less maintenance.
- Can you afford to finance the purchase? Financing a rental property may be different to financing your own home and you may need a different type of mortgage. You will also need to account for extra expenses like landlord insurance.
InnoHome can carry out a thorough pre-purchase rental property inspection for you
A pre-purchase rental property inspection is just as important as getting a pre-purchase builders report for a property you intend to live in yourself. In fact, if you are buying a property as an investment then you need to make doubly sure it is sound.
The inspection will give you a detailed overview of the state of the building and highlight any problem areas. You can then either use these to negotiate with the vendor or pull out of the sale. If you are buying as an investment, you might have a lower threshold as to whether the amount of work that needs to be done and the potential cost means you pull out then for your own home.
A building inspection will also identify any areas where better insulation and heating is required. This is especially important in a rental property as new requirements for insulation in a rental property come in from July 2019. New heating regulations are also on the horizon.
InnoHome carries out property inspections across Auckland and provides you with a written report within 24 hours. If you need information in a hurry, we can give you a verbal report first. Book your inspection with us today.