So you’ve decided that now is the time to invest in property. Great! But before you start looking for your next home, it’s important to understand what makes a good investment, and how much you can afford.
For starters, think about why you want to invest in property in the first place. Is it because of the financial benefits? Or do you simply love the look and feel of a particular neighbourhood or house? If it’s the former, then make sure you have enough money set aside for any repairs or renovations that might be needed down the track. Also consider whether there are other ways for your money to grow faster than through investing in real estate—for example through starting a business or putting money into stocks and shares.
Set Your Budget
The first step to finding a great investment property is to set your budget.
Most investors recommend spending no more than 30% of your monthly gross income on real estate. However, if you are purchasing a rental property with no income potential (such as a short-sale), then this may not be an option for you.
If you are purchasing a rental property with an income potential, then the 30% rule will likely work for you. For example, if your monthly gross income is $3,000 per month and your desired purchase price is $150,000 (which would require about 20% down payment), then you will need to spend about $1,500 per month on your mortgage payment and other expenses related to owning the property such as insurance and maintenance costs. This leaves another $1,500 per month for taxes, utilities and other expenses associated with owning the property such as landscaping or pool maintenance costs that may arise over time.
Search for a property that needs work
If you are looking for a great investment property, look for one that needs work.
It’s important to find a home that has potential and can be fixed up over time. You don’t want to buy a home that is already perfect and ready for tenants right away; this will only make your rental income less than it could be if you had taken on some renovation projects first. The best way to get started with this type of project is by looking at homes in need of repair but with great potential–you will save money while making improvements as well as increasing your rents when they’re finished!
Look at real estate listings in your area
The first step is to search for properties in your area. Look for homes that are priced below market value and need work. Look for properties located in good neighborhoods and areas with a lot of development happening around them (this will help ensure the property holds its value).
Analyze the market and make an offer quickly
- Know what you can afford.
- Have a plan for the property.
- Know how to finance the property.
- Have an exit strategy in place if things don’t go according to plan, like finding another tenant or selling it on your own instead of using an agent (if possible). It’s also wise to have backup plans–like saving up more money in case something goes wrong with one of these steps along the way–so that even if things do go wrong, there are still other options available for getting out of trouble quickly without losing too much money or time on this investment opportunity!
Consider buying a fixer-upper as a long-term investment
Fixer-uppers are a great way to get a property at a good price, but they can also be very challenging. You’ll have to do a lot of work and spend money on repairs, but if you’re willing to put in the time and effort, they can be an excellent investment.
Fixer-uppers are properties that need significant repairs before they’re ready for sale or rent (or even living). They tend to sell for far less than comparable homes because of their condition–but their potential value increases as you renovate them into something more marketable.
Hire an expert
A local quantity surveyor in Gold Coast is an expert who can do more than just give you a rough estimate of how much your property will cost. They can also tell you exactly what work needs doing on a building and how much it will cost in labour, materials and other charges. This gives you a much better idea of whether or not it is worth buying a property and what sort of value for money it will offer when you sell or rent it out later on down the line.
Don’t buy an expensive home to flip or rent out as an income property right away
- Don’t buy an expensive home to flip or rent out as an income property right away.
- Instead, buy a place that needs work, but is not in terrible condition. The idea behind this strategy is that you can make money on the sale of these properties and use those profits as equity for future investments. If a person buys a house with no intention of living there but rather just wants to fix it up and sell it quickly, they are more likely to have problems finding renters because there are so many other properties available for rent at lower prices than theirs will be worth after renovations have been completed (and maybe even before!).
Finding a great investment property doesn’t have to be difficult. It requires patience, research, and careful financial planning. But if you’re willing to put in the work, you can find a home that will help you make money while providing peace of mind for years to come.
- Investing in rental properties tends not only provide better returns than investing in stocks or bonds but also comes with less risk than most other investment types–provided you choose wisely when selecting which properties will make good rentals!
