Is 2013 going to be the year you add in an
investment property to your portfolio of investments?
Interest rates are still low, so is it time to take advantage of a low rate mortgage payment,
making it more affordable and profitable to buy an investment property?
As with all other investments, it pays to study the market and gather all the information that you can.
Here are some tips for purchasing an investment property:
Interest rates are still low, so is it time to take advantage of a low rate mortgage payment,
making it more affordable and profitable to buy an investment property?
As with all other investments, it pays to study the market and gather all the information that you can.
Here are some tips for purchasing an investment property:
Do your research. If you are a first-time
investor, it would pay to study the market as well as the risks and benefits of
investing in properties. Be sure to brush up on the basics, such as the various
factors that affect property prices and how these cause prices to rise or drop.
Also pay attention to trends and news on the market and understand how these can
influence the market. It's really important to become familiar with the ins and
outs of the real estate business before buying investment properties as thorough
preparation is one really good way to ensure success in the
business.
Choose properties in a promising area.If you have done your research right, you will eventually come across "promising" areas where you can buy properties that will yield great profits. Promising does not necessarily translate to upscale properties that fetch high sale or rental prices, or cheap investments that allow you to return your investment quickly. A promising location is one that offers special features that are truly attractive to tenants. These features include schools for families, entertainment hubs for young professionals, or low-cost housing for college students. These promising features may differ with each type of tenant, and as such, you will have to...
Consider the type of tenants in the area. It may be tempting to choose a piece of properties based on what you would want yourself, but it's best to think of what your target tenants would like instead. When choosing properties, ask yourself what features your tenants would like or need. For instance, if you are catering to the college crowd, easy access to amenities, such as Laundromats, grocery stores or coffee shops may be important. If you plan on having families or young professionals as tenants, the property features you need to prioritise will change accordingly.
Take into account future expenses. As an investor, you need to carefully consider the expenses that will later on influence how much you earn from your investment. These include expenses for home repairs or renovations to make the house attractive to tenants and the taxes you will have to pay for on a regular basis. Make sure to include all these into your cost calculations to ensure that you will be able to afford purchasing the property and eventually earn back your initial investment.
Find a mortgage professional. They will let you know how much you will be able to afford, plus the interest rates will usually be lower than of a Banks interest rate, enabling you to profit the most.
Find a Realtor knowledgeable in the area of investment properties. Their expertise is usually because they have entered the investment property market and you can learn from them first hand all about what worked and what did not work for them. Could save you thousands of dollars.
Any questions, send me an email
akroemer@mortgagegroup.com
Choose properties in a promising area.If you have done your research right, you will eventually come across "promising" areas where you can buy properties that will yield great profits. Promising does not necessarily translate to upscale properties that fetch high sale or rental prices, or cheap investments that allow you to return your investment quickly. A promising location is one that offers special features that are truly attractive to tenants. These features include schools for families, entertainment hubs for young professionals, or low-cost housing for college students. These promising features may differ with each type of tenant, and as such, you will have to...
Consider the type of tenants in the area. It may be tempting to choose a piece of properties based on what you would want yourself, but it's best to think of what your target tenants would like instead. When choosing properties, ask yourself what features your tenants would like or need. For instance, if you are catering to the college crowd, easy access to amenities, such as Laundromats, grocery stores or coffee shops may be important. If you plan on having families or young professionals as tenants, the property features you need to prioritise will change accordingly.
Take into account future expenses. As an investor, you need to carefully consider the expenses that will later on influence how much you earn from your investment. These include expenses for home repairs or renovations to make the house attractive to tenants and the taxes you will have to pay for on a regular basis. Make sure to include all these into your cost calculations to ensure that you will be able to afford purchasing the property and eventually earn back your initial investment.
Find a mortgage professional. They will let you know how much you will be able to afford, plus the interest rates will usually be lower than of a Banks interest rate, enabling you to profit the most.
Find a Realtor knowledgeable in the area of investment properties. Their expertise is usually because they have entered the investment property market and you can learn from them first hand all about what worked and what did not work for them. Could save you thousands of dollars.
Any questions, send me an email
akroemer@mortgagegroup.com
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Angela Kroemer, AMP
Mortgage Professional
Local : 1.250.650.4182
Email :akroemer@mortgagegroup.com,
Website : KROEMERmortgages.com
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