Are you still looking into investing in property? While the market has seen huge gains in the last few decades, there should still be some money to be made. That being said, these tips could help. If you’re unsure exactly how to invest in property or what to look out for, then you’re in the right place. In this article, we’re going to look at 7 professional tips so that you can make the right property investing decision.
The great thing about investing in property is that not only should your principle increase in the long run, you should also gain a yearly yield as a landlord from renting it out. That’s two reasons to invest —growth and return, and not every other investment option have that much potential. That being said, you still need to be careful. You can also get some help from NRIA.net, but let’s have a look at the tips:
Check the yields
Make sure you research what the yields are like for any potential property, Look at similar properties in the same location and see what they’re getting each month in rent. Don’t overestimate, be realistic. Make sure you allow for a bit of money to be put on one side for repairs and other outgoings you might be liable for as a landlord. Consider landlord insurance as well.
Check recent sales in the area
Have a look at what the property market is like. Are properties selling quickly or staying on the market for ages? These are important things you need to look at.
Look at price growth
As well as looking at the general buoyancy of the market, you will want to have a clear idea of how much properties have gone up in price over the last few years. You will normally want to invest in a growing market. There could still be money to be made in a shrinking market if you believe it has bottomed out, but this could be much riskier.
Check local infrastructure projects
One thing that could have a big impact on the local area and potential house price growth is if there are any local infrastructure projects going on, like new roads or other things planned. These can take a while, and won’t be guaranteed, but could be a good way to speculate. Make sure this isn’t the only reason you choose a certain area, though.
Check crime rates
High crime areas can affect house prose growth, and also mean you’ve got to spend more on security and other associated costs.
Check landlord rules
Make sure you’re allowed to rent properties in that location and that there aren’t any caps or other local rules that might be prohibitive.
Consult an expert
To make sure you really know what properties to invest in and what areas might be good for you, consider talking to an expert for advice. They might know a lot more than you think.
Hopefully, these seven tips are enough to get you started on your way to property investing success.