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

45 Properties
Page 1 of 4
$399,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
4
Days on Site
12303508
MLS
This YOTELPAD is all about convenience and puts the function in functionality! Perfectly located in the heart of Canyons Village just steps away from ski lifts, shopping, dining and multiple apres...
$410,000
Neighborhood: Powderwood
1
Beds
1
Baths
648
Sq.Ft.
1984
Year Built
6
Days on Site
12303497
MLS
Fully Furnished Powder Wood condo on the second floor with a view of Hi Ute Ranch open space. Quick access to the trail system. On High valley Bus Route. Powder Wood has nice amenity package...
$340,000
Neighborhood: Prospector Square Condos
1
Beds
1
Baths
358
Sq.Ft.
1978
Year Built
9
Days on Site
12303454
MLS
Morning sun fills this charming Park City studio updated with beautiful hickory hardwood flooring, reclaimed wood cabinetry, granite countertop, farmhouse sink & Samsung refrigerator in the kitchen,...
Pending
900 Bitner Rd Park City,  UT 84098
$419,000
Neighborhood: Canyon Creek
1
Beds
1
Baths
802
Sq.Ft.
1997
Year Built
17
Days on Site
12303346
MLS
Delightful one-bedroom unit with fireplace and detached garage. North facing, second floor for cooler summers. Open floor plan centers on the gas fireplace; an invitation to sit, relax, and enjoy...
$499,000
Neighborhood: Treasure Mountain Inn
1
Baths
385
Sq.Ft.
1965
Year Built
20
Days on Site
12303318
MLS
Enjoy Park City lifestyle in this rarely available junior suite at Treasure Mountain Inn. Located at the top of Historic Main Street with world class dining and shopping right outside your door....
$405,000
Neighborhood: Carriage House
1
Beds
1
Baths
490
Sq.Ft.
1988
Year Built
35
Days on Site
12303118
MLS
Embark on your Park City real estate journey with this versatile one-bedroom unit, ready for your personal touch. Whether you're an investor seeking a valuable asset or a homeowner in search of a...
$425,000
Neighborhood: Powderwood
1
Beds
1
Baths
648
Sq.Ft.
1985
Year Built
35
Days on Site
12303134
MLS
With all new kitchen appliances and new paint, this Powderwoood condo is an ideal starter or second home that can also be rented nightly. It is a cute one and you will not be disappointed. A middle...
$305,000
Neighborhood: Silverado Lodge
13/4
Baths
289
Sq.Ft.
2007
Year Built
42
Days on Site
12303032
MLS
Are you looking for a conservative-priced Park City condo? Offered at 20+% lower price than any other whole ownership condos at Canyons base, some smart value-investor is sure to pounce on this one!...
$315,000
Neighborhood: Prospector Square Condos
13/4
Baths
295
Sq.Ft.
1978
Year Built
52
Days on Site
12302865
MLS
Welcome to the charming and lucrative world of Park City living! Nestled in the heart of the highly sought-after Prospector Square, this exquisite studio condo presents an exceptional opportunity for...
$420,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2021
Year Built
73
Days on Site
12302560
MLS
Welcome to YotelPAD #420, a stunning top-floor condo with breathtaking ski mountain views. Located right at the Canyons Base of Park City Mountain Resort, this property offers unparalleled...
$450,000
Neighborhood: Brighton Estates
2
Beds
1,472
Sq.Ft.
1973
Year Built
78
Days on Site
12302459
MLS
This listing includes two lots of record and an existing cabin (Lot 18, which is .85 acres & Lot 19, which is .75 acres in Phase 4-A of Brighton Estates). The setting of this property is exceptional...
$385,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
346
Sq.Ft.
2020
Year Built
79
Days on Site
12302438
MLS
If you're looking for an elevated mountain experience with space to live, play and socialize in one of North America's largest four-seasons playgrounds, then look no more! This highly desirable...

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