Purchasing an investment property in the North of Boston area can be a lucrative venture, but it requires careful consideration, planning, and insights from a professional. The right location, property type, market understanding, management approach, and financial planning are all essential factors to ensure your investment’s success.

In this blog post, we’ll cover the essential considerations of buying a dedicated income property. 

Not sure whether you should hire a property manager or take on the role yourself? Click here to read our blog post on the topic. 

Why North of Boston is a Great Place to Invest

While there are a lot of great reasons to buy an investment property north of Boston, one of the main factors influencing the area’s rental landscape is demand. 

Many communities serve as hubs for industries such as healthcare and tech, attracting young professionals to the area year after year. Further, the area’s suburban atmosphere is additionally a major draw for families. Along with attracting families and young professionals, the North of Boston rental market is also bolstered by college students. Students at Tufts University and even Harvard often choose to rent in communities like Arlington, Medford, and even Winchester. 

This continual growth and reliable demand have elevated the demand for rental housing, creating new high-potential opportunities for investors. 

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Considering the purchase of a dedicated investment property? Check out these other blog posts for helpful tips! 

• What to Consider Before Buying a Second Property
• 5 Things to Consider to Get Your Offer Accepted
• How to Maximize the Value of Your Home Purchase

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Location 

Location is often touted as the most crucial factor in real estate investment, and the North of Boston area is no exception. A property’s location – both at a municipal level and right down to the neighborhood will greatly influence its profitability, required management, and more. 

Each community in the North of Boston area has its unique appeal. However, some neighborhoods may bring higher demand than others. 

For instance, the availability of reliable public transportation is a major draw for renters. Properties located near these transportation hubs tend to be more desirable and can command higher rents. The same applies to an area’s amenities and infrastructure. Consider shopping centers, medical facilities, nearby schools, and entertainment options when evaluating a property’s location. The more attractive the neighborhood, the easier it will be to attract tenants. 

In addition to demand, it’s also important to factor in management duties when considering a property’s location. If you’ll be taking on the role of property manager yourself, it’s a good idea to find a property that’s not too far away. While not mandatory, purchasing an investment property that’s easily accessible can provide you and your future tenants a smoother experience.

Property Taxes 

Property taxes are one of the largest recurring costs of owning an investment property and across the diverse North of Boston landscape, property taxes can vary from one community to the next. As an investor, it’s essential to consider the tax implications when evaluating potential properties, as high property taxes can impact your cash flow and return on investment.

Further, if you’re considering a long-term buy-and-hold strategy, you’ll also want to calculate whether the rental income can cover not only your mortgage but also the property taxes. In some cases, you might be willing to pay higher taxes if you anticipate a strong appreciation in property value.

Long-Term Potential 

In addition to considering how easy it will be to attract tenants, you should also assess the long-term potential of a property. While short-term rental income is important, consider how the property’s value is likely to appreciate over time. Factors such as neighborhood development, infrastructure improvements, and local economic growth can impact long-term potential.

Even if you’re a seasoned investor, accurately assessing a property’s long-term potential is best accomplished with a North of Boston real estate agent. As an expert in the local market, they can help you make an informed estimation of how a particular property’s value may appreciate over time. 

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Searching for other investor-focused resources? Explore these other resources from our website. 

• Is it Better to Sell Your Home or Keep it as an Investment?
• Andersen Group Realty’s Refined Services For Investors

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Maximize Your Investment

Looking to purchase an investment property? As seasoned experts in the dynamic North of Boston market, Andersen Group Realty can guide you toward a strategic and profitable purchase. 

Purchasing a dedicated income property as opposed to a home is a specialized process. As investors and property managers ourselves, we’re well-versed in the complexities of these transactions. We endeavour to make the process simpler from start to finish by providing guidance, education, and refined purchasing strategies. 

Discover Andersen Group Realty’s unparalleled investment advisory services today. Click here to send us an email or call 781-729-2329 to get started.