What to look for in a neighbourhood so that your real estate makes for profitable rental property

Discussion in 'North America Real Estate' started by whpmc, Mar 20, 2012.

  1. whpmc

    whpmc New Member

    Here are the top 3 things to look for in a neighbourhood to ensure that you real estate investment will make for profitable rental property:

    Employment Rate
    Low employment rates indicate two things - one, the possibility of the rise in crime, and two, that the standard of living is going to drop. These are not good signs. Always look for areas where there is a good rate of employment and maybe even where there are jobs available as jobs attract rental tenants.

    Crime rate
    Nobody wants to live in an area with high crime, no matter how good your property is. Low crime rates are a sign of healthy, friendly neighbourhoods where people are more likely to want to live.

    Average Rent
    The average rent tells you what you can expect from a neighbourhood. People are not going to pay much above the average rent in the neighbourhood. You should also check the listings. If there are too many properties already available for rent it means that it is not a good neighbourhood.
     
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