How to Get the Best Out Of Your Property Investments
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What is a property investment?
Property investment comes in two common forms: either you buy land or property that is still being built and developed with the intention of selling it at a profit afterwards, or you could buy an already established house, apartment or office, and rent it out in order to receive a monthly income. Of course there are risks involved with both of these options, but some careful planning and consideration could lead to huge returns on this investment in the long-run, and make it really worth your while.
How do I know a property is a good investment?
Before you throw a ton of cash at any property or residential home/apartment, consider the following points:
The number one rule to follow before you make any investment ever, is to do your research. Research in this case will involve taking a look around the area you are planning to invest in. Try to uncover the average selling and rental price of the properties in the area, so that you have a general idea of your returns. Once you know what the area is valued at, you will easily be able to tell when a property is a well-priced or if the real estate agent is trying to take you for a ride.
Perform a due diligence investigation on the property. This step is vital to ensuring your investment isn’t on a property whose flaws are concealed or unknown. Checking that the building has good facilities, paid up water and electricity as well as a full structure inspection can save you huge amounts in the long run. Despite the initial cost of the inspection which can run into the tens of thousands depending on the building, this is one area of consideration that should be factored into your property investment plans.
I’ve bought a property, now what?
So you have forked out the capital to invest in a property that you’ve deemed an appropriate investment, now what?
Budget for building upgrades and renovations when necessary in order to keep your property up to date with building trends and technology. Properties that are outdated or without features that are fast becoming common, such as power saving lighting or low energy air-conditioning can struggle to sell, and when they do, usually as a discounted price.
In order to make sure you get the maximum return possible when it comes time to sell, it is important to make a good first impression in the mind of prospective buyers. Good presentation of your property will create an interest and could even cause some competition between possible tenants. If you could get into this position, you are likely to do very well.
Ensure that all appliances and fittings are neatly fitted and have been replaced if they were broken or dysfunctional. Don’t neglect the outside area of the property either – it’s amazing what a fresh coat of paint can do (both inside and outside the property). By taking care of these things up front, you also ensure maintenance costs won’t be too high over time, meaning your money can continue being invested, instead of spending on unnecessary maintenance that could easily have been avoided.
For more advice on finding the best property investment for you and your pocket, visit Ash Brook’s website. We have many tips and tricks to make investing a breeze.
Author: Quirk
