Are you planning to buy a rental property? Do you have a lot
of questions in your mind? Once you step out for a survey you will get a lot of
options waiting for you, don’t get confused by thinking about all that options.
First you need to understand the basic features of a rental property then only
you will be in a better position to match the provided characteristics with
your own requirements. Buying a property only because you like it will be a
fool decision; instead you should get proper knowledge of the features of that
property and then take the decision of buying it. Now, let us concentrate on
few important features of a rental property which needs to be known before
buying it:
1.
Age and condition
There is a strong trade off between old property and
maintenance charges. If you want to buy a well built old property in a good
locality then you have to bear with the high maintenance charges of that
property since it may requiring a lot of touch ups. But, if you are thinking
that you have selected a new construction and will not have to spend more on
maintenance charges, then you are largely mistaken because these days even new
construction sometimes requires heavy maintenance charges due to its poor
quality construction. Thus you have to be wise in your decision of choosing the
Commercial Property in Delhi NCR considering
its age and condition properly. Otherwise you will not be able to make good
profit.
2.
Size
If you plan to rent your newly bought property then the size
in square foot as well as number of bedrooms are two important features to be
considered because this will affect the nature of tenants and the amount that
they are willing to pay as rent.
3.
Location
This the most important feature for a rented property because
it has various forward and backward linkages attached to it. These may include safety,
desirability, vacancy rates, resale ability, appreciation potential, tenant
quality, price, price-to-rent ratios etc.
4.
Price and Rental Income:
The price is also an important feature because the first and
foremost thing to consider while buying a rented property is your affordability
and then comes the rent you will be able to fetch from that property. The
question here is whether or not you will be able to earn profit from that. The
rental income needs to be high enough in order to bear the expenses as well as
cover the price of that property.
5.
Appreciation Potential
This is a feature which matters to some specific clients who
are buying a rented property in lieu of earning from rent as well as from its
appreciation in a specific period of time. So if you are thinking about the
increase in property’s worth in a specific period of time then do consider it’s
potential in that area before buying one.
Now since you are aware of 5 critical
features of a rented property then you must consider all these keeping in mind
the finance you have and profit you are expecting from that property before
buying such a property.