When investing in property, one can usually expect to see some great returns in the long run. Of course, gone are the days of double-digit growth every year. It is still possible, however, to make good money in real estate investments. Here are five things you need to know about property investments.
A Quality Agent Makes All the Difference
When you’re looking to invest in property, be sure you have an agent who comes highly recommended and who you can trust to assist you. This is important, as a good agent can find the best properties and help guide an investor through the process. Since most work for a commission, they will work hard for their clients. At the same time, when hiring a professional, one should make sure to ask a few questions. An agent working in Bonita Springs real estate recommends getting in touch with an agent’s former clients, as they can give you the best idea of what you can expect from an agent.
Not Everybody Loves a Landlord
Most potential investors would like to buy properties and rent them out to good, honest tenants. While it is possible to enjoy a nice return on investment, it is not as simple as some believe. When renting out a house, the owner will have to deal with broken pipes, messy tenants, and people who skip out on rent. While one should not fear becoming a landlord, it is wise to consider the big picture.
Do not Buy Land
It is often tempting for a buyer to look at raw land, see the potential of a plot, and wish to purchase it. Usually, this is a bad deal for the buyer as they will have to buy insurance and deal with other issues relating to land ownership from day one. Not only that, it takes a lot of work to build a place. This is especially true when dealing with local regulations.
Shop Around for Loans
Some people have loyalty to their local banks and will usually go to them for a loan. While this might work for some, it is beneficial to shop around for the best rate. Since the competition is high, a consumer can get a great home loan rate. Over time, one will save thousands of dollars when finding a good deal on a loan.
Take the Time to Find Great Tenants
If you decide to rent out houses and become a landlord, be sure to research any potential tenants thoroughly. Remember, they will live in the house and could potentially cause a lot of issues. For this reason, a landlord should do a background and credit check on anyone who wants to rent the place.
Investing in property is a wise choice for many. While this is the case, it is still important for a potential investor to consider his or her long-term goals before they make any buying decisions.
About Author: Emma Sturgis is a freelance writer living in Boston. She writes on a variety of things, most often real estate and education. When not writing, she enjoys reading, rock climbing, and film noir.