Now is a great time to invest
For property investors willing to do their homework, make a savvy purchase and have their property expertly managed, the rewards of property investment can be substantial.
Various strategies can be used on the road to real estate prosperity. In one, investors ‘flip’ properties by buying a house, renovating it and selling for a profit. In another, investors purchase the property with the intent to hold it for many years.
A common approach is to purchase an income-producing property such as a single-family home, an apartment, an office or retail building or farmland to rent out the property or units within it. By having tenants, investors benefit not only from any appreciation over time but also the rental cash flow and, sometimes, tax offsets. There’s also a degree of inflation protection as when operating costs increase, rents can increase as well.
What to watch for:
Many start their search online. However the majority of investors will want to tap into our local real estate knowledge for help to find and evaluate an investment property.
Location will always impact the value of real estate. In residential properties, the local community, economy and school district are necessary considerations. Meaningful due diligence is also required on commercial properties; leases usually span longer than a year, and research on tenants is a must.
Deciding whether the property is affordable involves a little more homework.
Budget every cost that will be tacked on to the price, including government fees and insurance. If the property is a fixer-upper, inspections should be undertaken to prove its structure is still sound; make sure to add improvement estimates into the equation, including a cushion for unforeseen extras and remember to ask us for any insights we may have.