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

71 Properties
Page 1 of 6
$385,000
Neighborhood: Carriage House
1
Beds
1F13/4
Baths
490
Sq.Ft.
1988
Year Built
2
Days on Site
12400668
MLS
Pending
2303 Deer Hollow Rd Park City,  UT 84060
$486,000
Neighborhood: Pioche Village Condominiums
13/4
Baths
461
Sq.Ft.
2023
Year Built
4
Days on Site
12400635
MLS
$325,000
Neighborhood: Carriage House
1
Baths
300
Sq.Ft.
1988
Year Built
7
Days on Site
12400609
MLS
$449,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
402
Sq.Ft.
2020
Year Built
9
Days on Site
12400590
MLS
$479,000
Neighborhood: Prospector Square Subdivision (Psa)
1
Beds
1
Baths
500
Sq.Ft.
1978
Year Built
10
Days on Site
12400584
MLS
$395,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
11
Days on Site
12400573
MLS
$395,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
11
Days on Site
12400574
MLS
$395,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
11
Days on Site
12400575
MLS
$384,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
11
Days on Site
12400577
MLS
$379,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
15
Days on Site
12400533
MLS
$447,000
Neighborhood: Pioche Village Condominiums
13/4
Baths
447
Sq.Ft.
2023
Year Built
17
Days on Site
12400492
MLS
$385,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
346
Sq.Ft.
2020
Year Built
17
Days on Site
12400152
MLS

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