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If you’re looking to find the right property for investment, then you need to keep a few things in mind. Below are some real estate investment philosophies for you to consider before you buy.
Property investment is perhaps one of the best avenues for investment you can ever take on in life.
When you invest in property (whether to live in or to rent out) you create a wonderful method for making money.
The right property investment can provide you with some great passive income and/or growth on your money.
We had fun renovating my son’s bedroom
Today I want to talk about one of the specific parts of property investment that can be tricky: investing in residential real estate.
I’ve personally invested in New York residential real estate – and found it to be an amazing chance to widen my investment portfolio and bring monetary stability.
I also had fun renovating the space where we live.
But how do you know which is the right property for investment? Here’s some thoughts on real estate investing.
It is important for you to assess both the intrinsic value of a home as well as the area it’s located within.
If you’re considering renting out the property you plan to buy, then it’s easier to invest in property close to your present home. After all, no one will know your area better than you. This knowledge is power – and can be helpful in terms of assessing the profitability of your investment. Plus, should any problems with the tenant – or property – arise, then you will be conveniently nearby. So you should do a search to determine what’s available on the market near you.
Of course, you don’t have to invest in your own home town. But if you are to invest it is important to take the time to learn more about the area first, to know if it’s the right property for investment. Let’s say you live in Burlington, Ontario. It would be nice to settle down in this city because you’re already familiar with it. However, it would also be beneficial to explore your options in other nearby cities. Consider townhouse properties in Hamilton, Oakville, or Lincoln for a change of scenery.
Although it might be difficult to buy a property if the market has a ton of competition, this is always the best thing to do.
By buying a property in an area with high competition, you will be able to make a bigger profit through rent. Additionally, one pro tip is to look for wholesale companies like New Western, as they often sell properties that are off-the-market. This means they are for sale in your competitive market, but the average person can’t see them. Thus, it tends to mean you have access to a property with lots of potential, but without as much competition for bids. Effectively, this tactic can help you snag a bargain.
We personally chose to invest in a smaller sized home – in order to be able to afford living in an awesome location.Why?
Even though our home was smaller than what we wanted, we knew the apartment would always have strong resell value – because this neighborhood is loved so greatly.
Plus, we loved the quality of life living in this neighborhood would bring our family: great restaurants, fabulous schools, convenient movie theaters, a nearby farmer’s market, a local dog run, etc…
If you head to an auction and buy an old property for peanuts, you likely will have no problems carrying out some hefty renovation without going over budget.
However, what if the property is fairly new and already full price?
Ideally, you never want to buy a full price property that needs a lot of work.
The most you should be doing is changing the wallpaper and paint work.
Reminder: Sometimes the estimated costs increase as the home renovation moves forward. So make sure you save enough money for this real estate investment.
A good way to discover if a home is the right property for investing: talk to a prospective tenant.
If you already have a tenant in mind, you can choose a property based on what they need.
And/or – try to talk to tenants already living in the building or neighborhood. Find out the pros and cons of living in this location.