You need to take advantage of the current housing market before it’s too late.
It’s currently a seller’s market. That could all change overnight if the economy tanks. If you’ve been thinking about investing in property you need to do it quickly so you can turn around and sell that property before things change.
This might sound like a lot of pressure if you’re just entering the property investment game. But like all markets, you need to strike while the iron is hot. With just a few tips, you can become a master at this.
Making money off of investments comes down to choosing the right horse to bet on. In this case, that horse is a property. If you invest in the wrong property, you might as well be throwing your money away.
Looking to splash some cash on your property? First and foremost, you should know where to invest! Find the best property with these property investment tips.
1. Do Your House Homework
Your money is on the line so you need to prepare for this investment like it’s the SATS times one hundred. This means knowing everything about the current market in the area you are considering.
You need to predict what buyers are looking for. What type of people you will be catering towards. And how to attract them.
With a targeted marketing plan in mind, you can go forward figuring out exactly how much you can spend on this project.
2. Make a Bulletproof Budget
When investing in property, coming out even is not an option. Sure it beats a loss, but this is going to be a lot of work. You want to make a nice profit from this property.
That’s why you can’t spend too much on this project. Sure you want to turn this investment into a luxury property that everyone will want to buy. But if you put too much into it, you won’t get anything out of it.
Calculate how much money you have and how much you can borrow. Compare that to how much the property is going to cost plus the renovations.
If the bridge between those two numbers is too far, walk away!
But if you’ve crunched the numbers and the investment looks bonified then you may have the right property on your hands.
3. Pick The Right Hood
The location of your investment property will be one of the biggest factors in its value. You might find a killer deal on an affordable fixer-upper. But if it’s in a bad part of town, you won’t get the buyers you want.
Buyers, especially those with families, don’t want to be too far away from valuable amenities. Ideally, your investment property is within proximity to schools, entertainment, shopping, or at least reliable public transportation.
If you can predict an area will be becoming more popular in the future then roll the dice on that investment. Maybe you can beat an inevitable market boom.
4. Look For Icing On The Cake
What’s around your property is important but so is what’s on it. Buyers love when a home has bonus features. These are the things that really turn your investment house into an investment home.
According to Vie Financial, “a swimming pool, fireplace, french doors etc, can make your property stand out from the pack and attract more interest.”
Because these features are already included in your property, you save money having to install them too. Bonus features really are icing on the cake.
5. You Must Flip It
If a property doesn’t meet all your high standards then flipping the house is a good option. Flipping has to be indelibly baked into your budget. Allocate more money for renovations than for the initial purchase.
Depending on the extent of the renovations a house flipping project could end up taking a long time. However, you’ll have more control over the overall look and feel of your investment property.
By flipping a house you can specifically cater to the buyers you want to attract. You know what they want and you can give it to them. Just make sure you don’t end up throwing to much capital into a money pit.
6. Pick A Super Squad
Some investors might want to make this a team effort. They’ll hook up with friends or family to have more capital upfront. This can be a good option.
But you want to make sure you trust these people with your money. Taking on a project like this can make or break any relationship. If you have any doubts about your investment partners it’s best to get a loan from a bank.
At least a bank won’t make Thanksgiving awkward.
Your squad will also include hiring a contractor. Many of these people will take too long or try to rip you off. Do your due diligence to make sure there is no weak link in your investment team’s chain.
7. Sell Or Rent Your Property Online
Another way to save money on your investment is to sell your property on your own. There are many great sites out there that can help you with this process.
Posting your property online also opens it up to potential renters. If you love your new property and don’t want to sell it outright, renting is a great option!
8. Decide If This Is The Right Life For you
This is a big decision to make. An investment property will take over your life. If any of these tips are scary to you then this might not be the lifestyle for you.
However, if this article has gotten you even more jazzed about your potential investment property then go full steam ahead!
Use These Property Investment Tips
You’ll be much more likely to secure a place with more value. Property investment tips are just the start though. Now you need to execute your plan!
If you’re good at this, property investing could become your new career. For more tips on how to finance this investment check out this article.
