If you are thinking about investing in property then do not make the mistake of assuming it will be easy. You have got a lot of work ahead of you and there are key lessons to take on board before you even start. That said, property investments can also be a fantastic way to make some extra money. This is true even if you already have a good paying job or are part of bigger career. But you will be responsible for whatever you purchase and this takes time. However, with some planning it is manageable to do both. Just take this advice into consideration and you will have a far easier road ahead of you.
Who is going to be living there?
Remember, buying property is the first step into becoming a landlord and landlords have tenants. Who are yours going to be? You can specify who you want to live in your property. For example, you may be thinking about catering specifically for students. Students are looking for low-cost housing. They are not looking for a life of luxury that they will not be able to afford in any case. Think about this when looking at those penthouse apartments and luxurious four bedroom homes. Obviously, if you are buying big houses, you are most likely selling to families. New families are looking for modern designs in a nice safe area to raise their children in.
First, things first. Let’s buy somewhere
If this is the first property you are buying, you may want to look for advice on the do’s and do not’s first. A good investment can be tricky to find, so you should use a resource like Follow up Boss first to make the whole process easier and smoother. Before you purchase some property remember you are the customer. The customer is always right. What do we mean by this? If you think the price the owner is asking for is too high, then try to get them to push it down. Think of it as buying a very large, preowned car. You would not expect to pay the asking price for a used car would you? The same is true for housing. If you do not think it is worth it do not agree to pay the price. Also, once you buy the property you are inheriting any problems it has. There is nothing wrong with purchasing a fixer upper. We would not recommend it but theoretically there is no problem. Just know that you will be responsible for the fix up. This brings us to number three.
Insurance is Vital
Insurance is your safety net. It will protect you if anything does go wrong with your property. It is wise to get the best deal that you can. How do you do this? There are plenty of sites where you can compare landlord insurance. Do not miss out. Save the money.
This is your starting point. But there is plenty of other things to take into account like how much you will be involved once you have bought the property. Just remember, do not jump at the chance simply because it sounds fantastic. It can be but there can also be problems on the way to becoming profitable. Do some more research before you start.