Investment properties are great ways to get your foot in the door of the property market and a good way to have a bit of extra cash coming in. But when it comes to your first investment property it can be a very scary experience and you can be left to feel a little bit unaware of ways to look at the market and invest, but with these tips you will be able to consider maybe looking at investing soon.
One thing that people think of when it comes to your first investment property is Age. Age should never be a reason as to why you shouldn’t invest, but employment status and savings will be a factor. A great tip when it comes to investing young is to save save save from your very first job. It helps you build that initial sum of money and will get you in the habit of saving.
Another way that can help save if you are a home owner is to pay the minimum repayments on your home so that excess money can be saved for future investment properties.
Savings will be the kick start of your investment path and regardless of your age.
When looking for an investment property, it is best to do the one thing that we all dread the most, Homework. To ensure you are getting the best investment, it is to research various real estate agencies and work out your budget and what you think a tenant would want to rent off you.
Location is key wit investment properties as it will determine how much interest you will get in your property. Other factors like transport, access to cafes and shopping centre and limited development in surrounding areas will give you that reassurance that your property will be in demand.
Rental return is also a one thing to research when investing. Rental return is simply what investors look at when buying a property, it is how much of the monthly paid rent they will get in return after expenses are paid for the property are subtracted. Good rentals return percentage on any property would be around the 10% mark and anything above is definitely worth the investment.
There are various factors of investment properties that must be looked at through a detailed thought process, so ensure that you are 100% invested into that property before you do invest.