Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Technical Analyst: Gold Price Weakness Should Be Short Term - 24th May 19
Silver Price Looking Weaker than Gold - 24th May 19
Nigel Farage's Brexit Party EU Elections Seats Results Forecast - 24th May 19
Powerful Signal from Gold GDX - 24th May 19
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

8 Tips for Choosing Your First Investment Property

Housing-Market / Buy to Let Apr 26, 2019 - 04:15 PM GMT

By: Steve_Barker

Housing-Market If you’re looking for your first investment property, you’ve no doubt familiarized yourself with trends in mortgage and interest rates and have decided that now is the time. The process may seem daunting, at first, but you’ll find it’s more manageable than you might think.

In choosing your investment property, you’re choosing to invest in your dreams. With this in mind, here are a few tips to help you out.


Tip 1): Do Your Research

You’re smart, and that’s why you’re going to do your research before you buy. Macroeconomic research can help you to get a sense of the larger trends and forces shaping the economy and the likely renting decisions of your prospective tenants.

You’ll also want to use your research to ensure that any property you are looking at is in the kind of place that will be appealing to your target clients. Of course, you’ll also want to make sure that it will be profitable.



Tip 2): Don’t Get Too Fancy

For your first investment property, you’re probably better off choosing something in the lower to middle price range. Even if you have the money, don’t go for a higher-end property as your first investment.

The reason for this is that keeping things simple for your first property also limits your liability in case things go poorly. With any luck, you’ll do well and then you’ll have what it takes to invest in a more impressive property. Some helpful tips for the first time homebuyers help you to go through the buying process.



Tip 3): Spend Time There

If you’re going to buy something, it’s a good idea to know what it’s really all about. You can figure this out for yourself if you spend time at the property, particularly if you do a couple of stake-outs from 6:00 am to 9:00 pm and from 9:00 pm to midnight prior to committing.

If you’ve spent time at the property during those hours, you’ll have a sense for the kinds of things that do or do not happen there. This will help you ascertain if you really want to buy it, or if you’d rather go somewhere else.

Tip 4): Look at the Numbers

Buy on a good margin, not a gut feeling. Don’t buy on a flip deal, in particular, without a sufficient margin for error. You may be tempted by a feeling that this, that, or the other place is perfect, but if it turns out to be much more expensive than you thought, you’ll be in a bind.

Think about your margin in terms of the things you know, other things that you may not know, and if you can, a buffer beyond that.

Tip 5): Look at the Location

Real estate is all about location. If your asset pays for tax, insurance, and maintenance and provides cash flow, you can expect that over time there will be enough appreciation to afford you good returns.

If you’ve done your homework and chosen well, your property will almost certainly become more valuable over time. This may afford you the chance to refinance on more favorable terms, the chance to raise rents, and higher sale prices if you ever do decide to sell.



Tip 6): Single-Family Homes Are Good First Investments

Investing in single-family homes is the easiest, simplest way to get started in real estate investment. These properties have easier upkeep, as a rule, than similarly-situated multifamily or commercial properties.

You’ll also have the advantage of only one tenant, meaning there will usually be less wear and tear. Plus, whenever something breaks, you’ll only need to fix the one thing. 

Tip 7): Invest in Turnkey Properties

If you invest in a property where there is already a tenant and a property manager, you have the great advantage of not having to fill these vacancies. Finding and screening a tenant is often an investor’s least favorite task, and finding a good property manager is nothing to be taken lightly either.

You can save yourself a great deal of headache and bother by simply buying a property where there is already a perfectly good tenant and a perfectly respectable property manager to keep things in good order.

Tip 8): You Need A Good Lease

Finally, whether you’re buying a turnkey property or filling a vacancy, you’ll want to have a good clear lease in place.

A lease should spell out everything expected of the tenant: when payments are due, guest policy, subletting policy, whether pets are allowed, etc. Need the tenant to keep the yard neat and trim? Make sure you include that.

Spelling things out clearly lays the groundwork for a good and mutually beneficial arrangement with your first tenant at your first property.

 

By Steve Barker

© 2019 Copyright Steve Barker - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules