Tips to Make Finding the Right Property Investment
These 11 steps will make the process of buying an investment property for immediate rental easier and give it more chance of producing the return that is expected.
1. Assess the equity available to put into an investment property.
2. Discuss your situation with a good mortgage broker and find out what monies can be borrowed, which will then give a property price range within which to work.
3. Go back to the business plan and get the criteria for purchasing – the size, transport, how many bathrooms, garages, construction, yard etc and also location details as regards schools, transport and so on.
4. Do some research and find out where a property the size you want for the money you have, is available – at this stage there may need to be an adjustment as you may need to buy in another area than you first intended and that should be OK as long as you do your homework on the real estate in that area.
5. Make a shortlist of areas in which to buy and contact some agents.
6. Make a short list of properties to view that fit within your criteria.
7. Once you have looked at the properties, make an even shorter list from which to buy.
8. Use online calculators or a property investment program to calculate that you will make the required money from the property of choice and check again that it fits your criteria.
9. Make an offer and go to contract (don’t forget to use the right buying entity on the contract) and cover yourself with clauses regarding finance and building inspection so that you have an out should you need it
10. Complete all your inspections for pests and so on and get a valuation if needs be.
11. Confirm that all your requirements have been met, finance approved and go to settlement.
Strictly speaking the steps outlined here are pretty standard when purchasing an investment property. Each time you purchase a property you will find that steps 1 and 2 will need to be done and step 3 should be part of the property business plan.
Investors find it easier to have a set plan.
When an investor has a set plan to follow it makes propety investment purchsing so much easer and saves a lot of time because each property can be compared to another quite easily. It means that you are not trying to compare a 3 bedroom townhouse against a 4 bedroom house or 1 bathroom against 3 bathrooms. You can see what I mean here. Each different property falls within a different price range and this is why it is easier and safer to be able to compare one with another comparable one, rather than two different ones.
When a systematic criteria for purchasing is used it will make finding the right property investment opportunity so much easier and you will not have the need to keep changing your property investment strategies.
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