Buying property as an investment is one of the safest, soundest and most sure-fire ways to profit. We have collected some top tips to help you pick the right property in which to invest and make the most of your money.
Check if it is a cashflow-positive investment
Buying property is a safe, sound and smart way to invest your money, but if you can invest it in something else with a better return on investment without a heavy risk compared to property, you need to re-evaluate the property in which you are investing. Research trends and forecasts to ensure you invest in the right, cashflow-positive property.
While buying a fixer-upper for a song and making a huge profit after doing a Cinderella-type makeover is everyone’s dream, few people understand how difficult such a makeover is and also how risky it can be to invest in property that might prove to be difficult or impossible to renovate at a profit. Make sure you have a thorough understanding of what needs to be fixed, how much it will cost and how long it will take before taking such a risk.
Don’t quit your day job
Investment in property is an indirect investment and will require constant maintenance. The rent paid by your tenants might cover most or all of the bond, but you remain responsible for the upkeep of the property, and a burst geysers or cracked wall can be expensive to fix. You need to earn a steady income to provide for these kinds of expenses.
Don’t expect miracles
When buying a residential property as an investment, keep your expectations reasonable. Yes, it is a good investment. In fact, property is usually a great investment. But remain realistic. You will have additional and ongoing expenses. Underestimate your rental income as opposed to overestimating it to avoid disappointment and financial ramifications.
Mobus Properties has a wide range of residential properties that makes for the perfect residential property investment. For more information, visit www.mobusproperty.com today!
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