The Do’s of Investment Property

The Do’s of Investment Property

There are many different properties investing strategies, and no single strategy is perfectly suited to meet everyone’s needs. An investment property is real estate bought for the purpose of generating income. Choosing the right strategy will depend on your income, life stage, time availability, skill, and risk factor comfortability. Before becoming a property investor or adding another property to your portfolio, it’s always important to ensure you have done your homework and understand what you can afford. There can be many additional costs to buying a property and all of them need to be factored in along with potential interest rate movements in the future.

​​DO BUILD IN A CASH BUFFER

There will always be an element of risk, regardless of your investment. It’s important to try to reduce that risk as much as possible. Buying the best quality properties you can in the best locations is key. It is also just as important to have plenty of spare cash on hand for any unseen circumstances, such as emergency repairs. Having a cash buffer will reduce that risk and give you more time to ride out any bumps.

DO BUY IN THE BEST LOCATION YOU CAN AFFORD

Buyers and renters are attracted to areas that are close to work, schools, transport, and leisure facilities, and will often pay a premium for them. As affordability becomes more and more of a problem with ever-increasing property prices, the limited supply and high demand in the good suburbs may continue to sustain those higher prices.

DO GET PROFESSIONAL ADVICE

"Professional investors hire the best experts they can throughout the entire process including accountants, lawyers, valuers, building inspectors, property managers, and buyer’s agents. The best professionals are often very busy and are successful property investors in their own right." Info from Pam Pester, Commercial Real Estate Agent

DO CONCENTRATE ON THE NUMBERS

Numbers tell you virtually everything and are cold and hard, which is just what you want when making investment decisions. Most property investors aim to make money, and the numbers don’t lie.

DO CONCENTRATE ON THE LONG TERM

Property is a long-term game, especially when it costs five to six percent to buy and two to four percent to sell before capital gains tax. It’s essential that you buy the right property in the first place and don’t have to sell soon after, as that can quickly make any profit disappear.

DO LOOK AT THE POTENTIAL POSITIVE OUTCOMES

The value of your property may rise enough for you to sell and make a profit. You can benefit from tax deductions on your rental property, such as mortgage interest, property taxes, and expenses like advertising, repairs, and insurance. You can gain consistent income from long-term rentals. You can pay down your mortgage with rental income and build equity in the property.

When investing in real estate, the goal is to put your money to work today so you have more money in the future. The profit, or return, you make on your investments must be enough to cover the risk you take and the taxes you pay. Real estate investing can really be quite simple once you understand the basic factors of investment, economics, and risk. You buy properties, avoid going bankrupt, and earn money through rent, all so that you can buy even more properties.

More Advice for Investment Buyers:

Search Local Properties Under $500,000 in Our Area

19 Properties
Page 1 of 2
$445,000
Neighborhood: Carriage House
1
Beds
1
Baths
510
Sq.Ft.
1988
Year Built
7
Days on Site
12202761
MLS
This accessible inviting one-bedroom unit features a fireplace, full kitchen with stove, refrigerator, and microwave. Situated ground level looking out at the pool just a couple of doors away from...
$474,900
Neighborhood: Lodge At Westgate
13/4
Baths
335
Sq.Ft.
2008
Year Built
7
Days on Site
12202765
MLS
This updated Westgate condo comfortably sleeps 4 adults, making it the perfect getaway or rental property in the heart of the Park City Resort Canyons Base Area. Offered full-furnished and turnkey....
$409,500
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
8
Days on Site
12104721
MLS
Conveniently located in the heart of Canyons Village. Steps away from the Red Pine Gondola, shopping, dining and skiing. This studio unit has efficiently designed spaces.The studio comes fully...
$485,000
Neighborhood: Canyon Creek
1
Beds
1
Baths
802
Sq.Ft.
1997
Year Built
11
Days on Site
12202693
MLS
Prime location in quiet back building plus RARE PRIVATE GARAGE. Canyon Creek community gives you clubhouse/pool/hot tub & gym. Roomy master with walk in closet. Adjacent to the Swaner and PC Trail...
$450,000
Neighborhood: Carriage House
1
Beds
1
Baths
510
Sq.Ft.
1988
Year Built
15
Days on Site
12202546
MLS
Location! What an incredible opportunity to have a remodeled stylishly designed carriage house unit. Offered totally turn key! Located minutes from 2 world class ski resorts PCMR & Deer Valley Ski...
$475,000
Neighborhood: Canyon Creek
1
Beds
1
Baths
802
Sq.Ft.
1997
Year Built
19
Days on Site
12202506
MLS
Welcome to beautiful Park City! Enjoy this updated and fresh 1/1 Easy Living condo in Canyon Creek. Upgrades include: Brand new laminate floors and new carpets in the bedroom, Granite countertops,...
$500,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
402
Sq.Ft.
2020
Year Built
21
Days on Site
12202449
MLS
Just steps from the Red Pine Gondola, with shopping, dining, and skiing at your fingertips, there is no more convenient Canyons Village location than YOTELPAD. The efficiently designed space of this...
$389,900
Neighborhood: Prospector Square Condos
13/4
Baths
301
Sq.Ft.
1978
Year Built
25
Days on Site
12202356
MLS
New laminate floors, new kitchen, new decor and layout - you are going to love the way this studio looks and the comfort waiting for you in your own ground level Park City Studio get away. Perfect...
$435,000
Neighborhood: Prospector Square Condos
1
Baths
513
Sq.Ft.
1978
Year Built
33
Days on Site
12202127
MLS
The perfect mountain getaway or short term rental. This beautiful top level condo is offered turn-key with vaulted ceilings, updated kitchen granite countertops, new carpet and paint. The HOA allows...
$421,500
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
39
Days on Site
12202060
MLS
Nightly Rental Condo in Desirable Park City Canyons Ski Area- Sleeps 4-Euro chic design. Enjoy the easy life with concierge, seasonal apres parties, walk to skiing, summer music concerts, golf...
$409,000
Neighborhood: Powderwood
1
Beds
1
Baths
727
Sq.Ft.
1983
Year Built
49
Days on Site
12201835
MLS
Ideally located at the top of the Powderwood community, this top floor unit features 1 BD, 1 full bath plus a loft. The vaulted ceilings in the living/dining area provide great volume. A covered...
$500,000
Neighborhood: Carriage House
1
Beds
1
Baths
490
Sq.Ft.
1988
Year Built
58
Days on Site
12201670
MLS
Beautiful 1 bedroom condo in conveniently located Prospector. Extensive remodel was completed in 2018 - stainless steel appliances, expanded modern kitchen, new bathroom, new flooring, new fireplace,...

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