Investing in property can be a stressful process even for the seasoned investor because the industry keeps adjusting to new regulation and swings in value. This article gives you a heads up on some of the top tips to consider for property investment in 2017
This is one thing you should really consider when making a residential investment. Knowing whether you can really afford it in the first place is crucial. Particularly, if you are taking out a mortgage, you should pay attention to the income return expected and the potential for this to change due to interest rates and regulation.
You should also be aware and be prepared for tax changes and tighter mortgage regulation which are bound to come your way.
Second on the list is new infrastructure. This has the potential to redefine localities in terms of their atmosphere, vibrancy and of course their value.
New infrastructure and initiatives are bound to open up swathes of land that were initially regarded as unsuitable for development. If you can anticipate this and invest ahead then you would have a head start than other property investors.
Forecast On Returns
‘Greed’ is important for you as a property investor- that is if you are to get a huge uptick in value almost instantly.
As an investor you should therefore focus on the cash flow and take what the market has to offer in house price growth. It is advisable to have a keen eye for a really good rental property that is bound to give back a good return of investment
Develop a Keen Eye on SPENDING
Property investors aspiring to soar to greater heights should be aware of the added costs of owning and managing a property – it is never going to be a walk in the park. You are not going to simply add up the demanded rent for the year and then assume that is your return. It doesn’t work like that. It is common to find that the higher returning nature of property investment inevitably comes with more drawbacks than lower yielding bonds.
For instance, you simply can’t call your broker and sell it, and then you need to spend money to let and manage it. Expect to have voids, potential repairs, taxes, professional fees and other miscellaneous costs
Invest On Farming Land
For the ambitious property investor, you should consider purchasing a home with farming land. This can lead to added advantages if you are looking forward to elude punitive tax rates, since this sector often outperforms the traditional residential investment.
The auctions market is usually a rich source of opportunities, especially for investors who look forward to picking up bargains from banks that have foreclosed or from sellers who are not willing to invest their time and money in order to bring properties to standard.
Students are normally regarded as short of cash and living off rations, however, the reality is often very different. Buying in a market with a number of academic institutions can be such a wise move towards a strong income in the end.