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ĂŵĞŶŝƟĞƐ ĂƌĞ ĂůƌĞĂĚLJ ŝŶ ƉůĂĐĞ ŶĞĂƌ ƚŚĞ ƉƌŽƉĞƌƚLJ ĂŶĚ ĚŽ ƐŽŵĞ ƌĞƐĞĂƌĐŚ ƚŽ
ƵŶĐŽǀĞƌ ŝĨ ƚŚĞƌĞ ĂƌĞ ĂŶLJ ĨƵƚƵƌĞ ƉůĂŶƐ ĨŽƌ ŶĞǁ ƉƵďůŝĐ Žƌ ƉƌŝǀĂƚĞ ŝŶǀĞƐƚŵĞŶƚ
ƚŚĂƚ ǁŝůů Ɛƚ ĞŵƉůŽLJŵĞŶƚ ŽƉƉŽƌƚƵŶŝƟĞƐ Žƌ ĨĂĐŝůŝƟĞƐ ĨŽƌ ƚŚĞ ŶĞŝŐŚďŽƵƌŚŽŽĚ
ĂŶĚ ƚŚĞƌĞĨŽƌĞ ƉŽƚĞŶƟĂůůLJ ĚƌŝǀĞ ƵƉ ƉƌŝĐĞƐ͘
^ŝŵŝůĂƌůLJ͕ ƵŶĐŽǀĞƌŝŶŐ ƉůĂŶƐ ĨŽƌ ƵŶƐŝŐŚƚůLJ ĚĞǀĞůŽƉŵĞŶƚƐ Žƌ ƚŚĞ ĐƌĞĂƟŽŶ ŽĨ
ŝŶĚƵƐƚƌŝĂů njŽŶĞƐ Žƌ ŽƚŚĞƌ ŶŽŝƐLJ ƉƌĞĐŝŶĐƚƐ ŶĞĂƌďLJ ǁŝůů ŐŝǀĞ LJŽƵ ƚŚĞ ŽƉƉŽƌƚƵŶŝƚLJ
ƚŽ ŵŽǀĞ ƚŽ ĂŶŽƚŚĞƌ ŽƉƟŽŶ ĂŶĚ ŶŽƚ ŐĞƚ ĐĂƵŐŚƚ ŽƵƚ ŽŶĐĞ LJŽƵ ŚĂǀĞ ĂůƌĞĂĚLJ
purchased the property.
DŽƌĞ ŐĞŶĞƌĂůůLJ͕ LJŽƵ ŶĞĞĚ ƚŽ ŵĂŬĞ ƐƵƌĞ LJŽƵƌ ƉƌŽƉĞƌƚLJ ŝƐ ůŽĐĂƚĞĚ ŝŶ ĂŶ ĂƌĞĂ ŽĨ
ĚĞŵĂŶĚ ǁŚĞƌĞ ƉĞŽƉůĞ ǁĂŶƚ ƚŽ ůŝǀĞ ŶŽǁ ĂŶĚ ŝŶƚŽ ƚŚĞ ĨƵƚƵƌĞ͘ ZĞŵĞŵďĞƌ͕ ƚŽŽ͕
ƉĞŽƉůĞ ǁĂŶƚ ƚŽ ůŝǀĞ ĐůŽƐĞ ƚŽ ĂŵĞŶŝƟĞƐ͕ ĞŵƉůŽLJŵĞŶƚ ŽƉƉŽƌƚƵŶŝƟĞƐ͕ ƉƵďůŝĐ
transport and good schools.
ĂƚĞŐŽƌLJ
ŽŶƐŝĚĞƌ Ăůů ŽƉƟŽŶƐ͘ tŚŝůĞ LJŽƵ ĂƌĞ ĐŽŵĨŽƌƚĂďůĞ ŝŶ LJŽƵƌ ƚŚƌĞĞͲďĞĚƌŽŽŵ
ŚŽŵĞ͕ ƚŚĞƌĞ ŵŝŐŚƚ ďĞ ƌĞŶƚĞƌƐ ŝŶ ƐŽŵĞ ĂƌĞĂƐ ǁŚŽ ĂƌĞ ĐƌLJŝŶŐ ŽƵƚ ĨŽƌ ƵŶŝƚƐ͕
ƚŽǁŶŚŽƵƐĞƐ Žƌ ĚƵĂůͲŽĐĐƵƉĂŶĐLJ ŚŽŵĞƐ ƚŽ ƌĞŶƚ͘ KĨ ĐŽƵƌƐĞ͕ ďƵLJŝŶŐ Ă ƐŝŵŝůĂƌ
ŚŽŵĞ ŝŶ ĂŶŽƚŚĞƌ ůŽĐĂƟŽŶ ĐŽƵůĚ ǁŽƌŬ ĨŽƌ LJŽƵ ŝĨ ƚŚĞ ĚĞŵĂŶĚ ĨŽƌ ƚŚŝƐ ƚLJƉĞ ŽĨ
property is there.
tŚĞŶ ůŽŽŬŝŶŐ Ăƚ ƚŚĞ ŵĂŬĞͲƵƉ ŽĨ ďƵLJĞƌƐ ŽŶ ƚŚĞ ŵĂƌŬĞƚ Ăƚ ĂŶLJ ŐŝǀĞŶ ƟŵĞ͕
ĂƌŽƵŶĚ ϴϬй ĂƌĞ ŽǁŶĞƌͲŽĐĐƵƉŝĞƌƐ ůŽŽŬŝŶŐ ƚŽ ƵƉƐŝnjĞ͕ ĚŽǁŶƐŝnjĞ Žƌ ŵŽǀĞ
ůŽĐĂƟŽŶƐ͘ dƌLJ ƚŽ ĞŶƐƵƌĞ LJŽƵƌ ƉƌŽƉĞƌƚLJ ǁŝůů ĂůƐŽ ďĞ ĚĞƐŝƌĂďůĞ ƚŽ ŽǁŶĞƌͲ
ŽĐĐƵƉŝĞƌƐ ǁŚĞŶ ŝƚ ĐŽŵĞƐ ƟŵĞ ĨŽƌ LJŽƵ ƚŽ ƐĞůů͕ Žƌ ĞůƐĞ LJŽƵ ĂƌĞ ŵĂƌŬĞƟŶŐ ŝƚ ƚŽ Ă
ǀĞƌLJ ƐŵĂůů ƐĞĐƟŽŶ ŽĨ ƚŚĞ ŵĂƌŬĞƚ͘
The numbers
Any research into investment property prospects should include an
ŝŶǀĞƐƟŐĂƟŽŶ ŝŶƚŽ ƚŚĞ ǀĂĐĂŶĐLJ ƌĂƚĞƐ ĨŽƌ ƐŝŵŝůĂƌ ƉƌŽƉĞƌƟĞƐ ŝŶ ƚŚĞ ƐƵďƵƌď LJŽƵ
are looking at buying into. Vacancy rates are expressed as a percentage and
ƚĞůů LJŽƵ ŚŽǁ ŵĂŶLJ ƉƌŽƉĞƌƟĞƐ ĂƌĞ ƵŶƚĞŶĂŶƚĞĚ ŝŶ ƚŚĞ ĂƌĞĂ͕ ŐŝǀŝŶŐ LJŽƵ Ă ƉŝĐƚƵƌĞ
ŽĨ ǁŚĞƚŚĞƌ LJŽƵ ǁŝůů ƐƚƌƵŐŐůĞ ƚŽ ƌĞŶƚ ƚŚĞ ƉƌŽƉĞƌƚLJ ŽƵƚ͘ ǀĂĐĂŶĐLJ ƌĂƚĞ ŽĨ ďĞůŽǁ
ϱй ŝƐ ŐĞŶĞƌĂůůLJ ĐŽŶƐŝĚĞƌĞĚ ŐŽŽĚ͘
zŽƵƌ ŵŽƌƚŐĂŐĞ ďƌŽŬĞƌ ǁŝůů ďĞ ĂďůĞ ƚŽ ƉƌŽǀŝĚĞ LJŽƵ ǁŝƚŚ ĚĞƚĂŝůĞĚ ƌĞƉŽƌƚƐ ŽŶ ƚŚĞ
ƐƵďƵƌďƐͬĂƌĞĂƐ LJŽƵ ĂƌĞ ůŽŽŬŝŶŐ ƚŽ ďƵLJ ŝŶ ĂŶĚ ƉƌŽǀŝĚĞ ƚŚŝƐ ŝŶĨŽƌŵĂƟŽŶ͘
You also need to consider yield͕ ǁŚŝĐŚ ŝƐ ƚŚĞ ǀĂůƵĞ ŽĨ ƚŚĞ ŝŶĐŽŵĞ ŐĞŶĞƌĂƚĞĚ
by the rent paid by tenants expressed as a percentage of the total value of the
ƉƌŽƉĞƌƚLJ͘ /Ŷ ŵŽƌĞ ĐŽŵŵŽŶ ůĂŶŐƵĂŐĞ͕ ƚŚŝƐ ŝƐ ŽŌĞŶ ƌĞĨĞƌƌĞĚ ƚŽ ĂƐ ƚŚĞ ƌĞƚƵƌŶ ŽŶ
investment.
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