Thousands of people are nervous about investing in the stock market. That’s a fact caused, in part, by the global economic crisis of the last decade. Instead, many of these nervous investors take to the property market.
Bricks and mortar have long been a sound way to invest money in long-term projects for financial gain. I know what you’re going to say. Property prices aren’t as high as what they used to be, right?
But here’s the thing: you can use this fact to your advantage! It’s no secret that many unfortunate souls had their homes foreclosed by banks because they lost their jobs. As they need somewhere to live, they will look to rent a property instead of buying another one.
Rental properties are always in demand. Even in areas where people traditionally bought their homes. Do you have some money you would like to invest? If so, today’s handy guide will offer you tips on how to make money from properties you buy to rent out!
Don’t invest in an old property
One classic mistake that a lot of newbie property investors make is to buy cheap but old houses. Yes, your initial investment will be small. But old properties will need a lot of maintenance and repairs on a regular basis.
Don’t forget; these costs have to come out of your profit! And if you spend more than you make, you’ve made a bad investment choice! Instead, aim for properties that are ten or fewer years old. Remember: you need to think of this as a business deal, not a property you fall in love with.
Choose the right area
The last thing you want to do is buy property in a questionable neighborhood! Be sure to spend some time researching suitable areas. Your checklist should include:
• Low crime rates;
• Excellent provision for schools and amenities;
• Accessible to nearby major towns and cities.
For example, homes for sale in Bensalem, PA represent tick the above boxes and more. And they offer excellent value for money too!
Buy properties that appeal to a wide audience
Starter homes, like two bedroom houses, offer the broadest appeal to your target audience. Growing families, professional couples and more find such properties the most attractive.
Avoid spending your money on a mansion in an affluent area. Instead, consider buying two or more “average” properties in a good location. That way, you can secure the most regular income stream.
Look outside of your local area
All too often I see would-be property buyers restricting themselves to their local areas. Make sure you don’t make this same mistake. That’s because you will be less likely to miss out on a golden opportunity!
Spend a few hours researching properties within say a 50 mile radius or more. I’d avoid going any further a field unless you have someone in the area that can represent you in your absence.
Work on your poker face
Today’s final tip is to keep the cat in the bag as it were! Don’t give realtors any indication of your intentions until you know for sure first!
Instead, keep polite when viewing potential properties to buy. Feel free to ask any questions about possible issues that can help you reduce the price later.