Should I only invest in properties where I want to live?
There are several things you should consider when tackling a thought like this.
When choosing a property to invest in , you are likely to choose a house that caters to your preference. People tend to assume that others would have similar preferences. However, in reality, different people like to live in different places - living by the beach, near a mall or more suburban areas. It depends on one’s lifestyle. The question to ask yourself: Is the house you’re buying to rent out for passive income suitable for your target tenant demographic? In fact, what your target tenant wants is more important given they are the ones who will be living in the property.
Another factor that you should consider is the duration you would spend living in the property. If you are thinking of living there for a few years, it would be considered a residential property instead of an investment property.
Additionally, there are various points that you should ponder over:
Globally, does that property investment generate you good returns?
Is there a good rental demand for that property?
Even if you may not want to live in that property, does your targeted tenant want to live in that property?
What kind of rent would you charge to cover your outgoing costs?
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