I have many investment properties here within the US and one in Bermuda. A lot of the properties that I brought was dumps within nice areas so I received a good deal but I had to fix up and a couple was brought during the global recession in 2008. No problem with fixing up the properties because of my engineering background that I received from the military and college anyway before you start hunting for an investment property, it is essential that you know what to look for. This is vital to your future earnings.
There are simple things you have to follow when purchasing an investment property. One of them is identifying your market. Knowing your market will give you an idea of where to look and what considerations to make. Aside from your market, you should also identify your budget and the income you expect from the investment. This is essential in your decision making.
Identifying your market:
You should identify the market you want to cater to. Is it going to be families, young professionals or students? If you want to cater to families, it is important that you choose a property near schools, health facilities, grocery stores, parks with a family-friendly environment. Identifying a market will help you determine their needs and be able to choose a home that will help address their needs.
You have to understand that different markets have different needs. This is very important if you intend to invest in multiple units. What you need to remember is to choose an environment, suitable for the market you picked.
Choosing the right home:
After identifying the market, it should be easier to pick a home. The first thing on your list should be the location. Aside from addressing the needs of your market, it should provide peace and quiet they need. It is important that you look for neighborhoods that possess the quality of the community you want to live in. This will make reselling easier in the future.
Checking the rental details:
Aside from the structure of the property, you should also check the affordability of the rent and the vacancy rate in the area. Even if the location is good, it will not work if the rent is very expensive. Check how much rent do property owners charge in that area. This will give you an idea of how much you will ask from your future tenants.
In addition to the rent, look at the vacancy rates as well. In some instances, the rent is cheap because the vacancy rate is high. You will want to avoid these areas. Look for areas with high demand for rental homes. This will help ensure satisfactory return on investments.
Inspecting the property:
Before sealing the deal, it is essential that you inspect the property. Remember that it is your responsibility to provide your tenants with a safe living space. If it will cost you more to repair the property, then it would be better to look for another potential investment property.
Finding the right property is easy if you know what you are looking for. This is why you have to identify your market and their needs first. This should direct you to the most suitable property for them.
They can also be a headache because of people not paying their rent and tearing your property up.
Best of Luck.. Take Care
The question remains, is it worth it to own a home or property, where inflation is nearly equal to the appreciation rate? What about the added costs of property tax, homeowners insurance, and then maintenance? It depends upon the level of your research, work ethic, network, experience, dedication, and overall striving, is it at full throttle or you want to make easy money. You can make easy money but you have to do the behind the scenes work and build up a network and knowledge.
The goal of course is to have a steady cash flow from quality tenants. What about those tax deductions on your mortgage? They don’t add up to that much, really. The key is operating an investment property, a business, that pays on a monthly basis if you run the property with integrity and you’ve done you research from the beginning.
Back Up Plan
Create a back up plan. Could you live in the property if you were having trouble making money on renting the home? Do you know a friend of family member who is willing to bail you out if there’s an emergency? If you choose your property correctly, one that pays for itself, you should be in a good situation, but it doesn’t hurt to have a contingency plan in case of an emergency.
Negative Cash Flow
Many investors don’t want to own property if there’s negative cash flow. But look at your individual financial situation, maybe you can manage to deal with a negative cash flow, you see the property has the potential to gain in appreciation and the tax benefits are there, it might be wise to take advantage of this opportunity........Property Management Bendigo
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Yes investing in properties is worth having i live in telangana which is a newly divided state and investing in such a state which is newly formed the properties rates are quite low and after few months when the investment from private sector increases there goes boom in the properties and real estate.
Thus i say to invest cleverly in a property gives good returns. http://www.bharathrentals.com
Store space or warehouse is a good investment.
What do u look for in investment properties?
