Have you thought about buying rental property? There are lots of reasons that right now is a good time to buy rental property. For one things home prices are at an all time low. I have been in the rental business for over 30 years and I have never seen it quite like this. Let me give you some ideas for things you should look out for when buying rental property.
Consider the location. In the real estate business they say there are three things important to the value of a home: “location, location and location; I cannot say it enough.” If you want to make sure that you profit from your real estate deal analyze the location of the property. You can use the Google real estate tool (just search for it on Google) to find the homes that have recently sold nearby. Take a look at their values to see if you are getting a good deal or not.
Take emotions out of the deal, never fall in love with a house. If you have ever been in love you will know it makes you do crazy, illogical things. You don’t want that same experience with your investment property purchase. You can like a house, and be fond of a great deal, but never get emotionally attached to an investment property. You need to calculate how much you are willing to pay by looking at recent sales, researching the rental market, and by deducting any repairs that will need to be made. Then don’t go a penny over that amount. Even if you think the property is a great deal stick to your logical deduction of the property’s value.
Have a professional inspect the home. If you are not a professional plumber, electrician, carpenter, and architect all rolled into one I suggest you hire the expertise of someone who knows how to spot problems. I have seen many people skip this step and buy a home only to find out later that the home had major electrical or plumbing problems that cost them thousands in additional funds that they never budgeted for. Not using a professional inspector is the mistake of an amateur.
Buying rental and investment property can be a tricky road. Follow the steps above to get started moving towards being a professional in the business who makes a nice income. For the last 30 years I have made my income with rental property and helping others to find the right investments. You can do this as well, it just takes a little effort on your part. Nothing in life is free, and this is not a way to become an instant millionaire, but rental property can provide you with a nice recurring income that will take you into your retirement years with ease.
Things To Know Before Buying A Property
Buying a home throughout the country can be your dream come true or your biggest nightmare. There are a few things you need to know before you go forward with buying a property. Taking a little time in the very beginning can save you a lot of grief and get you the best deal possible.
First, you want to have the property looked over by a professional appraiser. They will look for such things as problems with the roof, structural damage and much more. The more you know about the property before putting an offer on it, the better it will be for you.
Don’t assume that the owner is being forthcoming with all of the information. Even if you know the person or they are a mate of a mate, make sure you do all of the research on your own. Look at the home and all of its details. Find out about what the property is actually worth before making any kind of assumptions.
You are entitled to a mortgage broker. This is your opportunity to learn about various home buying incentives that are out there. If this is your first time buying a home, you may be able to take advantage of a variety of financial programs that will allow you to buy the property for cheaper than you would without tapping into these programs.
Property lawyers can assist you with the property buying process. They will take a look at the investment side of things as well as how taxes will affect you. When this information is provided to you, it will make it easier to know if you are making the right decision or not. You can always choose to go with a different property, but only if you haven’t made the purchase on the other one already.
When you work with commercial lawyers, they can assist with the paperwork. Especially if you aren’t an Australian citizen, there are various processes that you need to go through, such as being approved by the Foreign Commission.
Buying property is an important undertaking that shouldn’t be taken lightly. If you don’t take the time to have the property looked at, you may not be getting the good deal you think you are. Similarly, you need to ensure that a lawyer looks over all of the paperwork to avoid any kind of errors with the transference of property or with the financial aspect.