Are you looking to buy high returns real estate investment properties? If this is the case, you should carry out thorough research. Whether you are a first-time or seasoned investor, buying real estate can be a daunting task. There are many factors that can affect your real estate investment and make you lose your money. The good news is you can make a great investment decision by following the tips below.
Choose the Right Property
If you are like most people, you may be thinking of hiring a real estate broker to help you with the purchase. However, it is prudent to research the properties available on your own. When you have an agent, you can succumb to the pressure of buying an investment that is not suitable for your goals. It is critical to remain unbiased in your search for properties that are within your budget.
Decide whether you will be directly or indirectly managing the property you want to buy. It’s advisable to buy a property that is near where you live if you will be managing it on your own. On the other hand, you may not have to worry so much about location if you will be delegating the property management tasks to a professional real estate agency.
Location of the Property
You should also consider the neighborhood where the property you want is located. The quality of neighborhood can affect things such as the vacancy rate and types of tenants you will find. For example, if you purchase a property that is near a college, you can expect most of your tenants to be students. Apart from this, you will have to deal with regular vacancies, e.g. when the students close for the summer.
Rental property owners in some municipalities may have to deal with various hoops. The municipality may impose high permit fees and various other bureaucratic measures to discourage rental property investors.
Property Fees and Taxes
When you purchase a particular property, you should know how much you will be charged in the form of taxes. The amount of taxes you will be liable to pay will not be uniform across an area. Find out how your property income will be impacted by the taxes you will have to pay. If your property is situated in an area with high net worth tenants and low vacancy rates, then high property taxes may not really be an issue. However, keep in mind that the two do not always go hand in hand.
You can visit the municipal’s assessment office to find out the amount of taxes you will be liable to pay.
If you wish to purchase a rental investment property, keep the above factors in mind.