A Guide to Purchasing an Income/Revenue Property

With interest rates still low and properties in some
markets available at reduced prices, this may be an
ideal time to consider purchasing an income property.
Investment properties can prove to be very beneficial,
especially if you’ve done careful research and planning.
When it comes to selecting the right property, you’ll
need to consider several factors.

Market Timing
Even if buying an income property is not part of your
immediate investment plan, you should be aware of
market trends so that you understand where the market
is expected to go. Then, look for signs of a regional
market upswing. Positive changes in the market could
signal prime purchase and financing opportunities.

Location, Location, Location
The most important rule for choosing an income
property is the same as for choosing a retail operation:
the best locations create the greatest exposure and
generate the most sustainable demand. Preferred
houses and condo units are in communities with
reliable or improving infrastructure, rising employment
or other commercial or institutional development. 

Neighbourhood Status
Carefully consider the location of your income
property. You should determine transportation access
and nearby services, and also be satisfied that the
local community will not experience setbacks that
might lower neighborhood living standards. Such
setbacks could include absent owners or indifferent 
tenants. Similarly, as an owner you will have a
responsibility to uphold your commitment to your
chosen neighborhood. 
 
Unique Features
Being selective about your property purchase might a]
allow you to be selective about your tenants. Ideally,
your property will attract those who are willing to pay
little more rent for the features you offer, and are likel~
to want to stay longer. So look for features that would
be considered desirable and unique from a tenant’s
perspective. Advantages could include consumer
conveniences, attractive architecture, tasteful déco~
security, parking, amenities, and access to schools,
shopping, sports, leisure and entertainment activities.

Property Condition
Properties in need of repair need not be ignored, as
long as the repairs are measurable, affordable and
likely to improve the property’s desirability and long-
term value. The most promising properties have a
solid, protected foundation and sound superstructur
as well as minimal requirements for utility upgrades
In such cases, you should be able to easily afford to
invest in aesthetics that make your rental property
more attractive and competitive.

Careful Management
Successful property management requires a
professional approach that entails careful planning
and accurate bookkeeping. Budgets need to be
established and should include contingency funds f
unexpected repairs and upgrades, and consideratior
for interrupted income. If you’re uncertain about
budget planning and bookkeeping, building repairs ~
maintenance or tenant/landlord legalities, you might
consider hiring a trusted property management firm
or consulting with appropriate experts.