Investing in property can be a great way to build wealth. But there are many different things to consider when buying an investment property. If you don’t get it right, you can end up making a costly mistake.
Engaging the services of a buyer’s agent can help you make the right decision, as they know exactly what makes a good investment property, and can secure you the right property at the right price.
There are three key components to finding a great investment property;
The whole point of buying an investment property is to make you money in both the short and long term. In the short term, the right property will bring in a good rental income for you. In the long term, it will also increase in capital value.
Buyer’s agents understand the current market conditions, and they know exactly what each property is worth and how it is likely to perform in the future. They can save you money by making sure you invest in a property which is likely to increase in value, and that you don’t pay more for it than you should.
For beginners, investing in rental property can be a minefield. You don’t just have to understand the property market, you also have to know the area where you have chosen to buy. If you don’t live in the area, this can be particularly difficult. A good investment property needs to be located in a respectable area where there will be a constant supply of tenants, now and in the future. It should also be located close to public transport links, shops, schools, and other amenities.
A good buyer’s agent will have a thorough knowledge of their area. They understand which neighbourhoods to avoid and which will enable you to achieve a higher rental income.
There’s nothing wrong with choosing an investment property which you can increase the value of by doing some cosmetic work. However, if it needs more than a lick of paint or a new kitchen, you can find yourself spending more than you can afford. A buyer’s agent knows what to look for, and will make sure that there is nothing wrong with the structure or roof of the property, for example. This can help you make money more quickly in the short term, and save you a lot of money further down the line.
Buying an investment property is a business decision. It has to be done with a calm, rational head rather than with your heart, as you are not likely to live there. Using a buyer’s agent to represent you ensures that all emotion is taken out of the process. This rational decision-making means you are likely to end up with a better investment.
Buyer’s agents are also highly experienced negotiators, so they are likely to secure you a better price on a property than you could achieve yourself. In addition, they have a wide database of contacts, so they can find you properties which are not even on the market. These could be “silent sales” known only to real estate professionals, or even new-builds which are only on offer to those who know the developers. This widens the choice of investment properties available to you, and you can end up with the ideal investment property as a result.
There are so many things to consider when buying an investment property. It isn’t just about finding a profitable property, it’s also about avoiding expensive mistakes that protect you in the future as well as today.
If you would like investment property advice from the professionals, we are always happy to help. Please contact us for more information.