Over recent years, many people have made a lot of money from investing in property. For many, the ability to buy a property at a low cost, get it fixed up, and then rent it out to others for a monthly income has enabled them to make property investment a full time career and a very lucrative one at that.
With the right choices and a little business acumen, you can go a long way in the property market as property is something that is always in demand.
Of course, if you want to truly benefit from this type of investment you need to make sure you choose the right property, which isn’t always as easy as you may think. This is because you need to take a number of factors into consideration including the cost of the property, the cost of fixing it up, how much rent you are likely to get each month, the location of the property, local amenities, and the type of property.
Some of the key points to look at
While all of the points mentioned above are important, there are some key ones that can make a big difference to your success as a property investor.
First off is the location of the property you purchase. Obviously, if you are renting out the property, you want to ensure you have long terms tenants or a steady stream of people wanting to rent in the area. As such, you need to ensure you choose a property in a desirable area with a low crime rate.
You can find out more about the crime rate in the area by using facilities such as an address lookup service online.
Property price and rental charge
Another key point to look at is how much you can pay for the property. This is down to your personal financial circumstances and how much you can borrow if you are not a cash buyer. Factors such as your credit score and financial status will affect this.
In addition, you also need to determine how much rent you will be able to charge on the property as a landlord, as the last thing you want to do is pay over the odds for a property that you can only charge a low amount of rent on. The rental income you make should reflect the amount you pay for the property, and make sure you take the cost of fixing the property up into considerations when doing your number crunching. Use property investment rental income calculators like the one from RWinvest. They also have an extensive guide on how to find properties that not only fit your budget as a first-time property investor but offer strong potential rental yields and capital growth returns too.
The amount of work required
Finally, make sure you look at the level of work that needs to be carried out to get the property up to scratch. This is something that will impact both on costs and how long it takes to get the property to a state where it can be rented out. It is therefore very important to look at this and determine how much the repairs will cost as well as how long it will take to get all of the work carried out.