Property investment can be extremely lucrative if you buy the right residential properties at the right price, but if you make a few bad decisions along the way, you may end up getting your fingers badly burned. Not everyone has the time, the money, or the stomach to jump on board the property investment train, but if you are considering investing in Townhouse Construction, here are some things you should know. And we have also had a loft conversion done for a property in Surrey and could not be happier with the outcome as it’s just incredible the amount of extra space that we now have in our home.
Capital Growth, Tenants, or Both
The beauty of investment property is that it can make you money in two different ways. Firstly, property almost always appreciates in value, so if you own it for several years, you could make a decent profit when you come to sell it on. Secondly, if you subsequently decide to let out the property to paying tenants, you will have a monthly income in the form of rent payments.
Some people invest in second or third properties and keep them strictly for personal use. But, if you want to make extra money, it is worth installing tenants and charging them rent.
Buy the Right Property
You have a choice: residential or commercial property. Both can generate an income and capital growth, but they are very different in terms of day-to-day management. If you end up going for a commercial property, then you may want to contact a commercial law firm in case you get into any legal troubles.
Research properties before you invest. If you are considering buying a second property in your local area, you are likely to be familiar with property prices and the best (and worst) neighborhoods.
If, however, you want to invest in a property in another town, city or even state, take the time to find out about local property prices and different neighborhoods. For example, if North Oaks appeals, talk to Linden Hills Real Estate Minneapolis for some local knowledge.
Target Your Ideal Tenant
Think carefully about what type of tenant you want to attract, as this will have a bearing on the property you buy. Upmarket tenants look for high-spec homes with every modern convenience, whereas tenants on a low income won’t be able to afford a luxurious condo in an affluent neighborhood.
Once again, do your research. Talk to local realtors and find out what types of property are most in demand. In a popular coastal town, it may be more profitable to invest in a beach condo and rent it out on short-term lets, but in the city, young professionals could be your best target tenant. Again, this is where local knowledge comes in very handy.
Consider the Costs of Property Investment
Your first expense will be the cost of the property. Unless you are a cash buyer, account for the cost of borrowing money, i.e. mortgage interest and other finance costs.
You also need to factor in property maintenance, legal costs, letting agent fees if you decide to hire an agent to manage your property, and the cost of renovation if the property needs work before it can be let out.
Although property investment is lucrative, you need to go into it with your eyes wide open. Talk to an experienced property investor before you make a final decision.