Investors have ideal tenant in mind when buying property
Investors have a “perfect tenant” in mind, but disagree about what that tenant wants.
Mortgage Choice’s annual Investor Survey has found two-thirds of property investors think about their preferred tenant and the type of property that would suit them when considering an investment property. But would-be investors were divided about what the features they thought would be important to potential tenants.
“Looking at the survey results, 39.4% of investors said location, including the suburb and street, was the most important thing to look at when shopping for an investment property, while a further 36.8% said strong tenant demand influenced their property buying decision the most,” Mortgage Choice CEO John Flavell said.
Flavell said a further 31.4% of respondents indicated that the level of repairs, renovations and ongoing maintenance a property would need would drive their purchasing decision.
“The reality is it is important to consider all of these factors and more when buying an investment property. At the end of the day, if you want your investment property to be successful and enjoy consistent tenant demand, then you have to buy a property that appeals to tenants and not just yourself,” Flavell said.
Flavell urged investors to consider factors such as location, the security of the premises, available parking, storage space and a low need for maintenance.