The success of a rental property investment always depends on the choice of a good address. From the image of the neighbourhood to its public services and amenities, we have sifted through the criteria that characterise good locations.
The golden rule for a successful real estate investment? It can be summed up in three words: location, location and location. The maxim is very well known, but it is almost a caricature of it. But real estate investors have no choice but to respect it. And with good reason: a good address ensures the long-term value of your home. It absorbs the shock of a possible downturn in the real estate market. A good location allows you to easily find a tenant (this is essential in the context of a rental investment) and to rent at a good price. At the end of the operation, the house or apartment will sell more quickly. And you increase your chances of receiving a capital gain on the sale of your property.
Investing: security objective.
Distinguishing the wheat from the chaff is a matter of common sense. You will add rigour and you will hunt down information. You will sift through the municipality, the neighbourhood and the rental market. You will adapt your research according to the tenant target you are aiming for. You will thus choose your location with discernment, which will enable you to build a lasting asset, to secure your rent and your rental yield.
Local rental investment
You suck at geography? You’re a good investor! To put it plainly: the right address is first of all the one you know. You know if it has a good image, if it attracts new residents in general and new tenants in particular. Many investors do this and make their plans come true in a location they know well.
Investing near you. Some investors take this logic one step further and choose to buy in their own neighbourhood. A strategy with many advantages: your tenant will stay close to your home. You will be able to talk to him more easily and intervene more quickly if necessary (repairs for example). For his part, the tenant will be more vigilant about rent payments and maintenance of the property.
Investment: priority to the tenant
Rental priority: If you don’t bet on proximity, remember above all that when it comes to real estate investment, everything comes from the tenant. Without him, no rent, no profitability, expenses that skyrocket and a credit that is difficult to repay. To seduce the tenant, you will have to offer him a good address. The district will offer him a pleasant setting, with an efficient service, green spaces, public facilities… Also think in terms of target customers. If you plan to rent to a student, the campus and the lively city centre should be easily accessible.
Target tenants: If you are investing in a large space, chances are it will be occupied by a family. Therefore, consider the proximity to schools. Note that a quality school is a major asset. It is no coincidence that housing is more expensive when it is close to a reputable high school. Also keep an eye on the level of security. In short, the right address is above all the one you consider as such since you would agree to live there. You will choose it as if you were going to be the one to become a tenant.