Did you know that the real estate market is worth $10.5 trillion?
Yep, real estate is a lucrative industry! And the good news is, you can benefit from the fantastic market right now.
We're talking investment property. By buying real estate and renting out properties, you'll have steady income coming in each month - which is an excellent return on investment.
Below, we share a quick guide to buying an investment property. Let's get into it.
Buying or Financing Your Investment Property
When purchasing investment property, financing will be one of the most critical steps. Do you plan to buy your property outright? Or are you looking to finance it?
Most first-time property owners choose to finance their property. Here, you'll need to consider elements like mortgage rates, interest rates, taxes, and other associated fees.
Finding the Right Location
Location, location, location.
This mantra is a favorite in the realtor world because it stands true. Your rental income will be directly proportional to the location you pick.
Why? Well, home properties vary according to demand, neighborhood, going rates, accessibility, and more. Find the right neighborhood by weighing your budget against your spatial requirements to determine if the property will be a money minter.
Think Long-Term
When buying investment property, remember it is crucial to have a long-term outlook. Don't expect to start making significant money right away; instead, prioritize keeping your cash flow going.
You'll still be paying down your principal and building equity in that way. Thus, you'll see your return on investment mature in a few years, so don't hurry the process.
Maintaining Your Investment
Arguably the most challenging part of investing in real estate is the maintenance. Following are some (of the many) responsibilities you will have:
- Posting your listing
- Finding tenants
- Screening tenants and performing background checks
- Maintaining and repairing your property
- Organizing rent collection and dues
- Solving problems that may come up and handling tenant complaints
- Pay landlord-paid utilities
Most investors simply don't have the time to carry out so many duties. That's why hiring a property management company will come in beneficial.
They will handle the day-to-day operations for you, which will keep your property going without any effort on your part. This is thus ideal for first-time and seasoned investors alike.
Property Management Made Easy
We hope this investment property guide helped clarify the basics of real estate investing. It has never been a better time to enter the market, so be sure to take advantage and become an investor today.
However, looking after your property can be challenging. That's where Terra Residential comes in. Our property management services will take care of managing and maintaining the property, finding and screening a tenant, and handling rent collection - all so you can rest assured your investment is in good hands.
Click here to contact us to learn more about our services today!
