8 Things To Bear In Mind Before Investing In A Property
1. Be sure to get a home you can imagine living in yourself: That’s right, the first question you want to ask is if the property is livable for you. If you think it’s the sort of home you’d live in, chances are so will someone else. This makes the property rent worthy.
2. Don’t be shy to bargain with seller: There is a common perception that there is little point to bargaining. This isn’t true. You can never look inside the mind of your seller. For all you know they might be prepared to make a deal at a cost you can afford. It is always worth a shot checking.
3. Conduct proper research: While a thorough inspection of the investment property will always give you a good headstart, what you really need to do is to properly investigate the rental market value of your particular area. This may involve vacancy rates, average rents, average age of rental stock, zoning and government regulations.
4. Keep your property close to yourself: The idea of having an investment property in a suburb far away from home or in another state does fascinate some people but staying close to home makes it easier to manage our property.
5. Get a building inspector: It is difficult to imagine that you will buy the perfect property for renting out the first time. It is therefore vital to get a building inspector to come check the property out and provide professional advice.
6. Get a trustworthy team behind you: Ideally, you want the best financial adviser, lender, accountant and estate agent and get them all to work alongside you on your first investment property.
7. Do proper checks on prospective tenants: You would want to be satisfied that the people you are moving into your investment property are trustworthy and reliable. It might be worth getting a real estate agent involved, as they are able to maintain regular contact with your tenants to look after your best interests.
8. Always have a substantial cash reserve: You will inevitably make better economic choices if you have a cash reserve as well as be able to prevent yourself from being talked into taking out a bigger loan than you need.
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