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

51 Properties
Page 1 of 5
$375,000
Neighborhood: Prospector Square Condos
1
Baths
358
Sq.Ft.
1978
Year Built
2
Days on Site
12300936
MLS
This down-to-the-studs, high end remodel, including new electrical, plumbing, and lighting throughout has garnered 130 Airbnb reviews for an impressive 4.9 rating. Wood-look, porcelain floor tiles...
$325,000
Neighborhood: Prospector Square Condos
13/4
Baths
354
Sq.Ft.
1978
Year Built
2
Days on Site
12300942
MLS
Beautiful condo in the heart of Park City! This condo is conveniently located next to biking trails, restaurants and one mile from Historic main Street and Park City Mountain Resort! Deer Valley is a...
$285,000
Neighborhood: Prospector Square Condos
13/4
Baths
315
Sq.Ft.
1978
Year Built
3
Days on Site
12300928
MLS
You'll love this turn-key investment or personal residence. The unit comes fully furnished and ready for use! The complex offer a 24-hour front desk for your guests to check-in. You'll love the easy...
Pending
2670 Canyons Resort Dr Park City,  UT 84098
$399,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
13
Days on Site
12300792
MLS
This Amazing Studio has a balcony where you can feel the energy of the Ski Mountain in the winter and listen to the outdoor concerts in the summer.The YOTELPAD is conveniently located in the heart of...
$450,000
Neighborhood: Silverado Lodge
1
Baths
321
Sq.Ft.
2007
Year Built
13
Days on Site
12203731
MLS
This beautifully updated Silverado unit offers cozy and thoughtful design, as well as in walking distance to the famous Canyons Village. This unit is only a 5 min walk to the ski lifts or take the...
Pending
2935 W Wildflower Ct Park City,  UT 84098
$499,000
Neighborhood: Ranch Condominiums
1
Beds
1F11/2
Baths
814
Sq.Ft.
1983
Year Built
19
Days on Site
12300727
MLS
End unit one Bedroom with an attached garage! Large windows allow natural light to brighten this 2nd and 3rd floor unit. The cozy, open layout make relaxing and entertaining easy. A private balcony...
$470,000
Neighborhood: Powderwood
2
Beds
1F13/4
Baths
814
Sq.Ft.
1983
Year Built
26
Days on Site
12300655
MLS
Top floor, vaulted ceilings, overlooking the beauty of Mountains & open lands, considered a prime location in community. Has a new Lennox furnace, upgraded kitchen, granite counters, updated master...
Pending
2670 Canyons Resort Dr Park City,  UT 84098
$399,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
31
Days on Site
12300625
MLS
This Amazing Studio where you can feel the energy of the Ski Mountain in the winter and listen to the outdoor concerts in the summer.The YOTELPAD is conveniently located in the heart of Canyons...
Pending
3000 Canyons Resort Dr Park City,  UT 84098
$459,000
Neighborhood: Lodge At Westgate
1
Baths
360
Sq.Ft.
2008
Year Built
33
Days on Site
12300591
MLS
Prime location in Upper Canyons Village. Separate Living room area with kitchenette. 8th upper floor unit. Nice decor with stone and granite finishes. One king bed in bedroom can be closed off. Two...
$399,000
Neighborhood: Snow Country
1
Beds
1
Baths
634
Sq.Ft.
1976
Year Built
58
Days on Site
12300322
MLS
Great Opportunity in prime location in Park City with this Snow Country One Bedroom condo. Perfect for second home, rental property right in the middle of Old Town and walking distance to Park City...
$439,000
Neighborhood: Canyon Creek
1
Beds
1
Baths
802
Sq.Ft.
1997
Year Built
72
Days on Site
12300177
MLS
2nd floor, 1 BR condo with views of Utah Olympic Park! Larger 802 SF floor plan with upgraded gas fireplace and dining nook. Laundry and pantry. Covered balcony with storage closet. Carport #182....
$345,000
Neighborhood: Prospector Square Condos
13/4
Baths
346
Sq.Ft.
1978
Year Built
74
Days on Site
12300131
MLS
Wonderful studio in Prospector Square! Prospector Square Condos are located in the heart of Park City and offer easy access via the free bus route to Park City's famous Main St, dining, world famous...

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