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

21 Properties
Page 1 of 2
$305,000
Neighborhood: Carriage House
1
Baths
300
Sq.Ft.
1988
Year Built
3
Days on Site
12204619
MLS
Come see this Fully Furnished - Turnkey Carriage House Condo in the highly desirable Prospector District. Featuring Mid Century Modern furnishings and a stocked kitchenette, this condo is an...
Open 12/9
1364 W Stillwater Dr Heber City, UT 84032
$499,000
Neighborhood: Lodge At Stillwater
1
Beds
2
Baths
743
Sq.Ft.
2001
Year Built
8
Days on Site
12204585
MLS
Refreshed and well-maintained one bedroom, two bathroom condo with full kitchen, open and bright living room, and large deck. Relax on your deck with views the mountains and slopes. Additional...
Open 12/7
6831 N 2200 West Park City, UT 84098
$488,800
Neighborhood: Powderwood
2
Beds
2
Baths
854
Sq.Ft.
1983
Year Built
27
Days on Site
12204452
MLS
Enjoy an indulging lifestyle with convenience and easy access to Park City's many recreational opportunities. This remodeled Powder Wood condominium is located on the bus route and just minutes from...
$250,000
Neighborhood: Prospector Square Condos
1
Baths
315
Sq.Ft.
1978
Year Built
34
Days on Site
12204401
MLS
Buyer Wanted! Prospector Square Studio! This 1st floor studio is an excellent opportunity to own a piece of Park City either for a retreat for yourself or an investment opportunity. Prospector...
$409,000
Neighborhood: Yotelpad Condominiums
1
Baths
338
Sq.Ft.
2020
Year Built
34
Days on Site
12204409
MLS
This studio offers beautiful mountain resort views and a convenient location in Canyons Village. Yotel is within walking distance to shopping, dining, and skiing/snowboarding. Offered fully...
$420,000
Neighborhood: Yotelpad Condominiums
13/4
Baths
338
Sq.Ft.
2020
Year Built
50
Days on Site
12204229
MLS
The vibe of YotelPad ownership is best described as having joi de vivre! Residence 326 is located two floors above the pool deck, with a large sliding glass door to take in the amazing ski views and...
$295,000
Neighborhood: Carriage House
1
Baths
250
Sq.Ft.
1988
Year Built
51
Days on Site
12204219
MLS
Great investment opportunity or primary residence. Large tile flooring, updated cabinets, cosmic granite tiles in the bathroom. This studio apartment is situated near the bus route, which provides...
$290,000
Neighborhood: Prospector Square Condos
1
Baths
315
Sq.Ft.
1978
Year Built
65
Days on Site
12204039
MLS
This recently updated studio condo located near the heart of Park City is perfect for anyone looking for a cozy spot located near all the adventure that Park City has to offer. Comes fully furnished...
$395,000
Neighborhood: Silverado Lodge
13/4
Baths
321
Sq.Ft.
2007
Year Built
76
Days on Site
12203932
MLS
Fully furnished and turnkey high end studio on the 4th floor of Main Building. Great investment for nightly rental income or week-end get-a-way just steps from skiing, golf course and all the...
$450,000
Neighborhood: Brighton Estates
704
Sq.Ft.
1968
Year Built
92
Days on Site
12203749
MLS
Opportunities like this do not come often in Brighton Estates. This listing includes three lots of record (Lot 196, 205, & 206 in Phase 2 of Brighton Estates). There is a wonderful stream that...
$450,000
Neighborhood: Silverado Lodge
1
Baths
321
Sq.Ft.
2007
Year Built
93
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...
$479,900
Neighborhood: Yotelpad Condominiums
13/4
Baths
402
Sq.Ft.
2020
Year Built
97
Days on Site
12203695
MLS
2 Epic passes included if closed by Dec. 30!! Large Top Floor studio with expansive golf course, mountain and valley views!! Light and bright. This large studio sleeps 4 and comes fully furnished,...

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