Purchasing
an investment property is one of the most important decisions that you'll ever
be a part of. As such, it's a necessity to make your decisions with only the
most careful of consideration. Here are the six tips that you need to heed in
order to ensure that you don't get fleeced.
Find
The Right Property At The Right Price
Yes,
this is a whole lot easier said than done. However, it's not impossible. All it
takes is some patience and research.
You
have to determine what everything in your area is selling for in order to be
able to spot a bargain! Further, you need to know that various property classes
will outperform each other. For example, land and home units will appreciate
differently.
Figure
Out The Cash Flow
It's
always a good idea that you know how to maintain your mortgage repayment
obligations over the long term. It's recommended that you analyze the cost of
servicing any loan only on an after-tax basis. By taking this approach, you
have the power to calculate and put the cost into actual terms that make sense
for you.
Look
For A Good Property Manager
Finding
a good property manager who is a professional in his or her field is vital.
Your property manager's job will be to make certain that everything is in order
between you and any of your tenants. A good property manager can extract the
best possible value for you from your property and help to keep your tenants in
line as well.
Choose
The Appropriate Type Of Mortgage
There
are many options available for financing the investment property that you
choose, so it's best to get sound advice. Options such as a variable rate loan
and a fixed rate loan are both popular choices, but your specific circumstances
will dictate what's most suitable for you. Consider that variable rates often
end up being cheaper over time, yet fixed rates at the right time are ideal.
Take
Equity From Another Property
Leverage
the equity from your residence or another investment property. Doing this is
actually an ideal way to purchase your investment property. Equity can be
calculated by way of calculating any difference between what you owe on your
mortgage and the overall value of your property.
Comprehend
Both The Market And Dynamics When Buying
It's
best to analyze what other properties are available in the area when you're
looking at an investment property. It's very advisable to actually talk to both
local people and real estate agents in the neighborhood. They can give you hints
on small, yet vital, things like which side of a street is considered more
desirable.
These
are the six tips to help make sure that you don't ever get fleeced when buying
an investment property. They can make the difference between purchasing a great
property that has a high return on investment and purchasing a lemon. Call your
trusted real estate professional today for some answers and more information.
Interested in selling your
Charleston area home? Visit: www.jeffcookrealestate.com Interested in buying a Charleston area
home? Visit: www.discovercharlestonareahomes.com
-Jeff
Cook
Jeff
Cook Real Estate
Charleston,
SC
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