Top 10 tips for investing in property
Thinking of entering the buy-to-let market?
Well, it can be a great idea if you read our real estate investment tips first! This market can be confusing, but I’ll help you out by giving you some valuable advice.
Tip #1: One of the most important things is finding the right property. That’s how it is. It may sound obvious, but you’d be surprised how many people don’t take the time to do this…and then suffer the consequences when they can’t rent it!
Two-bedroom apartments in the city are a good buy-to-rent option because they can be shared by more than one person. However, a three-bedroom townhouse is a great buy-to-let option because it will often give you the most bang for your buck in an area full of students.
Tip #2: Always remember that you are purchasing a rental property as an investment, NOT your personal home. This means that you shouldn’t look for a home just because you’d like to own it or start decorating it in your own personal style. Make your decision a business one, rather than a personal one, so you can maximize the returns on your investment!
Tip #3: Make sure your buy-to-let property is located near a good transportation system! Renters often place great importance on being able to access highways or public transportation.
Are you ready for the next of my real estate investment tips?
Tip #4: Hire a mortgage broker who can help you find the right mortgage. I know how difficult it can be to find the best investment option among all the buy-to-let mortgage offers available, so find a professional to help you!
Tip #5: Remember to factor in costs such as legal fees, stamp duty, ongoing mortgage costs, and decorating expenses. This will help you set a realistic budget. Too many investors forget about these expenses and don’t save money to pay for ongoing repairs and maintenance.
Are you getting used to this already? The buy-to-let market is not as difficult as it seems…
Tip #6: Hire a professional rental agent who can help you take care of all the important details. This person may manage the property, collect rent, and screen and select suitable tenants. Just remember that a full management service can eat up to 17.5% of your annual rent!
Tip #7: Don’t forget to purchase adequate insurance for your buy-to-let property. If you decide to rent your old residence, you will have to purchase new insurance because the existing ones will not be valid.
Here are some more of my real estate investment tips…
Tip #8: Find out about your legal obligations. For example, homeowners should consider fire, health and safety issues and hire licensed professionals to perform annual gas checks.
Tip #9: Consult with a tax expert or accountant to determine what taxes you must pay. You’ll need to pay taxes on any rental income received from your investment property, but you may also need to pay capital gains taxes. This depends on how long you have owned the property and your current tax situation.
Just one more of my real estate investment tips to go…
Tip #10: Last but not least, don’t enter the buy-to-let investment market planning to make a ton of money quickly. There are a lot of upfront costs and property values tend to increase over time. If you plan to stay in the market for 5-10 years, you will usually make a lot more money!
Now that I’ve shown you some top property investing tips, be sure to read my property development secrets.