With home prices still on the lower end, now is a great time to purchase an investment property to get a huge return on your investment. Whether you’re looking for a property in a University community or a fixer-upper in and up-and-coming neighborhood, here are five tips for buying an investment property this spring…
Plan and Research
You wouldn’t buy your own house without a plan or conducting research, so don’t invest in a property without doing the same. You want your property to achieve the best result, so come up with a long-term plan of what you ultimately hope to achieve. Make your goals realistic and include a thorough budget. The planning stages aren’t always the most exciting, but they provide the framework for the overall development of your new property.
Location is Key
Location will be the dictator of how much you can charge in rent or how much you can sell the property for after it is fixed up. Seek out locations with good transportation links and recreational areas. Avoid busy roads or areas that are being developed, potential buyers will see those as noisy inconveniences. University communities are usually a great place to invest because there is always a need for housing from students, faculty and staff.
Get an Inspection
Hiring someone to do an inspection might seem like a waste of money, but this is one thing you should not overlook. Even if the owner says the property was already inspected, paying the extra money will be worth it in the end. Whether or not they find a problem, you will have the peace of mind knowing that you’ve checked – and double checked – the quality of the property.
Use your Imagination
Don’t look at the property for what it is now, look at it for what it could be. Try to see past the chipped paint and lack of curb appeal, and pay attention to the attractive things that you can shape it into. Buying an investment property is a great way to let your creative juices flow.
Seeking help from a buyers’ advocate, financial planner and/or a property manager is also something to look into. They can each help you at different stages in the development of your investment property, and they can make all the difference.
Buying an investment property should be an experience that you learn and grow from. It can also be rewarding in more ways than one.
For tips on choosing an investment property that earns you the most profit, visit here.