Low home prices combined with low interest rates make this a great time to invest in a rental property. Whether you already own your home or are a first-time buyer, there are a few tips to keep in mind before investing in real estate. Initial research, choosing the right location, and organizing your finances ahead of time will help you make this process run far more smoothly, so that you can start turning a profit.
Consider All Investment Options
The very first step to take is to narrow down your options and think about the type of investment property you’re most interested in. Two of the most popular options are to restore and resell property, or rent it out as a landlord. Other options include purchasing land for development and investing in real estate. However, these types of investments can be trickier for first-time investors to negotiate, as they are still mired in unsteady market conditions.
Find the Right Location
If you’ve decided to look for property with rental income in mind, you’ll need to research your potential locations carefully. Well-travelled locations in major cities or in seaside resorts are obvious choices. For example, if you’re looking at property in Australia, you’d want to set your sights on real estate in Sydney or other major cities to ensure steady income from students and professionals. Yet within these cities, there are numerous neighbourhoods and suburbs to look at.
Areas a little bit outside of town can yield some great discounts, and can be quite profitable provided that they are connected with the city centre via easy transport links. Property investments in South Australia along the coast are always popular options as well. Small seaside resorts are perennial favourites with holiday goers and can provide you with seasonal income, no matter which country you’re looking at.
In addition to transportation links and tourist facilities, sound locations for investment properties will include neighbourhoods with low crime rates, in highly populated areas. Choosing a location with a good school district will help you attract families to your property, as will choosing property with multiple bedrooms and bathrooms.
Get Finances in Order
As with your primary residential property, when looking at investment property you’ll need sufficient assets. Be prepared with at least six months of mortgage payments in your savings account. If you have dry spells in between renters, you’ll still be responsible for the mortgage. You may also need money set aside for repairs if you want to repair the home to put it back on the market.
Build a Team of Professionals
With a clear vision of the type of property you’re looking for, a list of locations, and an organized financial portfolio, you will be primed for success. Teaming up with a real estate agent who has experience with investment property transactions can give you professional insight and point you in the right direction. It’s also good to have maintenance professionals on tap to deal with problems that may arise with your property. As a landlord, you will be expected to deal with any maintenance issues promptly and efficiently. Having these numbers to call in advance will save you a big headache later on.
These are a few issues to think about before you start your search, to ensure that your property investment venture is a success. Approaching the investment with a clear head and ample resources will yield a greater rate of return in the long run.
This Professional Post from the team at homesales.com.au
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