Building to rent out vs to live in? Here is what to consider
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Loading... - Emmani Bih
- 10 Oct 2022
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Owning a rental property is not just about collecting rent at the beginning of every month; there’s a lot more into it.
Have you ever wondered what the differences are in building a house to rent out vs building a home for yourself? Well, there are many aspects that are the same in both cases like location, market trends, amenities, neighbourhood. However, you need to carry out more research for building a rental unit to meet the diverse needs of possible tenants.
The rental market in Lusaka is buzzing with new houses popping up everywhere you turn. With this trend, many Zambian landlords try to enhance the looks of the home by installing expensive fixtures and add-ons, but they end up staying on the market for a long time because they result in higher rental prices than market averages.
However, a rental unit, when built correctly, can still be a lucrative way of getting few extra bucks every month. Such an income will help you in affording your home or moving into a dream neighbourhood. But, owning a rental property is not just about collecting rent at the beginning of every month; there’s a lot more into it.
Here’s our take on what factors you should consider when building a house that you plan to rent out vs. building a home that you plan to live in. So, let’s dive in:
Neighbourhood
For rental unit, you need to look out for a neighbourhood that attracts tenants but for your own living try to look for well-established neighbourhood. To be successful in the real estate business, you need to do detailed research about market opportunities and shift gears at the right time. It would help if you vetted the neighbourhood thoroughly for its liveability and amenities.
Don’t select an area that has a high vacancy rate. Also, get a sense of local market value and try to determine the area’s selling prices. If possible, select a site with lower property taxes. A place is ideal for rental properties if it has a good number of institutions and amenities nearby. Read More...
