When it comes to investing in a property, most of the people always questions about the prospects, return of investment and security. While some investors may want to buy a property and rent it out straight away, others may choose to live in the home while they renovate it. Investing in bricks and mortar can be a great way to create wealth, but there are some golden rules to consider before taking the plunge into property investment.
1- Investigate Properly
If you are buying an investment property, it’s important for you to make sure that the return you receive on your money will be worth it, like any investment. Take time to investigate the area you’re considering buying in, and get professional advice on property values, recent sales and the growth outlook for the area.
2- Take an advice on loan
Investment properly loans can be slightly different to regular home loans in terms of the options you have and the application criteria. For instance, you may be able to make interest-only repayments for the some of the loan term and get the rental value of the property taken into account for the potential to borrow more.
3- Select a property expert
You will most likely to want to rent out your investment property as soon as possible once you’ve purchased it, to maximize the return you’re getting as well as your ability to pay your mortgage. Doing this through a property manager will be at a cost, however is the easiest way to go, as they will market the property and reference check tenants for you, and can give you professional advice on rental prices in your area.
4- Test your property as others
Although you might not want to live in your investment property, it’s important to still consider whether you could live in it if you had to – not only as an emergency measure if you encounter financial trouble, but because this test will tell you if others will want to live in it. If the property you are considering buying has a poor or outdated fixtures, or is located in a less – than – desirable area, this may affect its rental value and how long your tenants will decide to stay.