Buying an investment property is an exciting time, and it is also a purchase which should be carefully considered. Once you have decided that your investment strategy involves real estate, you should compile a shortlist of criteria you will be looking for in a property. The criteria you choose are very important, and you should stick diligently to them so as to avoid making emotional decisions when you are considering your investment purchase.
As the saying goes â location location location. It is all important. Not just because of any views from the property though either. Factors to consider when considering the location of your investment property include the proximity of transport hubs such as trains and buses, even major roads can have an impact. Importantly consider that any future infrastructure in the area will definitely affect the value of the real estate nearby. For example, a recent announcement of the extension of a light rail network will likely result in a significant rise in the value of real estate in the area which will be serviced by the extension. As well as transport, other considerations of the location include the neighbours, schools in the area, access to shopping, parks, sporting facilities and other community infrastructure.
'Of course!' I hear you say â but I'm talking about the difference between the asking price for the property and the actual price that the seller is willing to accept for the property. Remember that your investment property should ideally be a sound property that you are able to secure at a reasonable price. You are looking to pay a cheap price no doubt, and that's to be expected, but remember that discounting from the asking price is not only possible, it is practically an expected industry standard. The benefits of this price negotiation is that you can make an offer of what your ideal price would be for the property. You may be surprised at the counter offer that is made in response to your offer â it may well be right up your alley, especially if the owner is keen to sell in a hurry.
Your investment property should be making you money from day one, and this may be in a variety of forms â capital growth, or rental returns, or a combination of both. The best way to ensure that all goes to plan with your investment is to do your research before you hand over the money. Learn as much as possible about real estate before you begin your investing and above all, avoid making emotional decisions on business matters. Enjoy!