When you’re looking for new investment opportunities, it is important to consider all of your options before you make a final decision.

One of the most profitable industries you will come across during your search will most certainly be real estate. Whether you have a lot of expertise in the housing market or you’re brand new to this domain, you should always take your time to do plenty of research. If you’re looking to invest in real estate in the near or distant future, then you’ll need to consider all of the characteristics of a good investment property. When it comes to capital growth, you want to create the best opportunities for yourself; making the wrong decisions in the initial stages could lead to unprofitable investments. Knowing where to begin will put you in a strong position from the moment you start searching for your ideal property. From gaining stability to understanding the type of houses that will sell in your chosen location, here are eight of the most important characteristics to consider when you start your search.

1. Location, Location, Location

One of the first considerations you need to make when deciding on an investment property is the location. Choosing the ideal spot to rent or sell a property will determine whether or not you’re flooded with potential tenants or buyers or whether you’re stuck with no leads. With Compass you can find exclusive listings before they even hit the market and all of the properties are located in highly desirable areas. Instead of choosing a destination that suits you, try to put yourself in the shoes of your potential tenants. Who are you hoping to target? Where will they be working? Are you targeting families or young professionals? Having your ideal client in mind will help you to decide on the ideal place to purchase your investment property. There are a number of different considerations to make with regards to the location of your property from local businesses to transport links, so keep this in mind when making your decision.

2. Small, But Fixable Flaws

If you’re looking for a completely flawless property to invest in, then you might be looking for quite a while. When there are small, but fixable flaws in a property it’s a great opportunity to invest and increase the value. Earning money from your property straight away is possible, but you might want to spend some time making small improvements so that you can earn more in the long run. Keep in mind that you don’t want to spend months or years renovating a property; the flaws should be quick to fix, but add value to the property once they’re enhanced.

3. Long Term Attractiveness

You aren’t going into this business to rent a property on a short term basis. Let’s face it, the longer your tenants stay, the easier it is for you to make consistent money. Try not to jump on board with regards to trends or buildings that are too modern. A new building or estate might be extremely popular now, but you need to be able to predict whether it will still be attractive and appealing in five or ten years' time. You want to invest in a timeless property that will continue to attract your ideal client for years to come.

4. A Competitive Price

Investing in a property isn’t about how much you can personally afford to spend, it’s about how quickly and effectively you can make a profit. Even if your budget is high, you don’t necessarily need to aim for the higher end just because you can. Taking the time to compare a property’s price to its real time value is a big help when you’re looking at pricing strategies. Generating a return on your property is the ultimate goal, so make sure you’re looking for high value properties that are on sale for a lower price.

5. Easy to Maintain

As you step into the world of real estate, you don’t want your entire life to revolve around your new investment. You will have certain responsibilities when it comes to upkeep and maintaining your property, so make sure you choose one that isn’t too much work. If you’re constantly having to fix ongoing issues you may develop a bad reputation as a landlord; you’re also taking a lot of valuable time out of your day to organize the maintenance of the property. Keeping an eye on your appliances and choosing a property that doesn’t have too many technical elements to keep on top of will be your best choice.

6. High Demand in the Area

There is no use purchasing a property that doesn’t have any local demand. You could invest in the most beautiful building, but if you aren’t choosing the right area or the right target demographic you aren’t going to earn a return. Carry out some market research on your chosen area and see what types of property are in high demand with regards to leasing. This will give you a good indication of what will be successful on the market.

7. The Potential for a Quick Turnaround

As mentioned earlier, it’s important to choose a property that you can get onto the market quickly. If you have to spend a lot of time on repairs and refurbishments it’s going to delay the process for you. Keep this in mind when you’re viewing properties and look for the potential for a quick turnaround. A property that is almost ready to go right away is certainly your best option when you’re looking to invest.

8. Friendly Neighbors and a Good Reputation

This point goes hand in hand with the idea of selecting a good location. When you choose an investment property with kind, amicable neighbors it instantly becomes a much easier sell. A lot of tenants will do their research on the area and may even knock on the neighbors doors to check what they’re like. Getting on the good side of the locals will help you to make a good impression on future tenants and it will help you make more money in the long term with your property investment. Opting for an area with a good reputation and low crime rates will always be advantageous when you’re trying to advertise to potential tenants. Do your research on the ins and outs of each area on your list and make a decision accordingly.

All in all, choosing the best property investment for you is going to take time and deep consideration. Whether you’re looking for the most desirable location or you’re carrying out background checks into your tenants to make sure they’re suitable clients for you, there is so much that goes on behind the scenes in this industry. When you are able to take an outside view and see potential in a property, this is when your eyes really start to open to the opportunities ahead of you. So, if you’re starting your search for investment properties soon these features should help you to decide on the best possible choice for you and your future. When you enter the world of property investment it can be very easy to get overwhelmed or distracted by the little things, but the characteristics above should help to lead you in the right direction.