Investing in property is a worthwhile activity that even young people can do today. But it’s not easy as what other people would like to think.
It takes patience, resourcefulness, careful planning and research in order to find the right property at the right location and purchase it at the right price. These acts alone can already save you from wasting your hard-earned money and enjoying the fruits of your investment for the long term.
Here are other steps you need to take to succeed in property investment.
Learning about the property market is a must if you want to be involved in buying and selling real estate. Apart from researching information on the internet, you can also make personal visits to areas you would like to invest in. Get in touch with the locals there, real estate agents and property managers and ask them about amenities, vacancy rates and home values.
You also need to attend open homes and auctions to get first hand information about property prices and the types of homes that sell in your preferred areas. Make sure that you buy a property in a high-performing area where growth will be consistent moving forward.
Manage Cash Flow
Proper management of your funds is also a must. Being a first time investor, you need to be careful about how you spend your money and manage your income.
If you want to rent out your investment property, how are you going to cope with interest rates and when you can’t find tenants. Determine the possible income you could generate and foresee expenses ahead of time. Consider long vacancy periods, unexpected maintenance costs, upgrades and higher insurance premiums.
Think Long Term
When you’re preparing to invest in property, you have to think for the long term. Plan and decide what you’re going to do with it. Are you going to renovate it or resell it straight away?
If you want to renovate it, determine where you’re going to get funds and how much you are willing to spend for such home makeover.
Additionally, you have to consider your target market even before the renovation starts. Are you targeting young couples, a growing family or retirees?
Get Financial Advice
In terms of finances, get advice from a professional mortgage broker to save you time, money and effort. This is very important in helping you find the right finance option for your investment property.
Things you will have to take into account are your financial capacity to obtain a mortgage loan, repayment amounts and stamp duty costs.
Derrick is a Memphis native specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com