Are You Buying Investment Properties with the Right Audience in Mind?

real estate audienceWhen rehabbing investment properties, it is important to think of the demographic that will be purchasing or renting the property.  Knowing your audience will allow you to make the proper rehab adjustments.  Recently, Homes.com and ForRent.com surveyed renters to determine lifestyles of renters and home buyers.

According to survey participants, while every household is comprised of different characteristics,

  • 80% of renters are females
  • 33% of renters were between the ages of 18 and 33
  • 45% of renters lived alone

And of this survey,

  • 30% of participants were 50 years-old and older
  • 44% share the property with a spouse, roommate or children

Homes.com and ForRent.com reported, half of the survey’s participants valued the most important aspect of a neighborhood to be the proximity to school/ work.  In addition to proximity, some wanted safety, and access to public transportation, family and entertainment.  45% said they didn’t require any special features, while 25% said they would pay extra for covered parking.  In addition to the covered parking, there were some desires for washer and dryer, air conditioning, and furnishing options.  Along with these furnishing options included energy efficiency.  According to the National Association of Home Builders, 94% want energy-star rated applicants, 91% want energy-star rates for the entire home, 89% want energy-star windows, and 88% want ceiling fans.

When looking for an investment property, keep these aspects in mind.  Think about location and what rehab improvements you can make to the property in order to have the outcome you are wishing for.

What demographics have you been renting/ selling to? What do you find these people are looking for in a property?