It is usually a great feeling being a landlord, especially if your property is bringing in a good and consistent rental income. This is usually the case if you managed to invest in just the right property at the right place and at the right time.
Here are 5 ways to help you make better informed investment decisions when it comes to buying a home as an investment.
#1 Urban areas are a good place to start
When it comes to real estate properties, the closer you are to amenities, infrastructure, schools, and so on, the faster the property value will increase. It is therefore advisable for you to look for homes in urban areas if your goal is to sell it later.
#2 Homes in a school district have an added advantage
Often, most potential renters are people with families, specifically kids that are still in the school going age. Therefore, properties that are within a school district are in demand. The numbers also indicate that renters would be willing to pay extra for a home that is close to a school district. As an investor, you need to take an extra step to find out the ratings of the schools within the district you would intend to purchase the home as this is crucial.
#3 Be sure it is a property you can rent
Many investors in homes have ended up very disappointed after finding out that they cannot rent out their property. In various places, there might be zoning laws or even homeowners’ associations that have put a restriction on rentals. It is therefore important to do your homework before signing on the dotted line.
#4 Find out how vibrant the job market is
Jobs go hand in hand with purchasing power therefore as an investor looking to buy a home, try and find out how the job market is in that particular area. Availability of jobs means there is an availability of renters ready and willing to pay for your property.
#5 Ensure the property will require minimal landscaping
As a rule of thumb, when you are planning to invest in a home, you should ensure that the property is not high maintenance as this will eat into your net returns. Generally speaking, you cannot count on the fact that you will get a tenant passionate about lawn mowing or gardening hence most of the costs of maintaining the landscape will fall on you.
We trust this will be helpful information for all budding investors in home ownership.
Let us know if you have any additional ideas.