Consider Studio City Property Management To Strengthen Your Hold In Real Estate

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

We often wonder is buying studio apartment a good investment. In fact, they are predominantly marketed with a very healthy rental yield. But, sometimes the attractiveness ends as there is a noise that surrounds them. The banks usually do not lend against small studio apartments. The student apartments are not an option and lending approval cannot be availed if the floor size is less than 50 square meter. There are banks that do not lend for apartments in large complexes. Nonetheless, the location of the apartment within the complex is important and motel or hotel conversions are strictly not acceptable. Thus, you need to go for professional studio city property management.

Some of the above-mentioned points are somewhat valid, while being just noise. It is a fact that the credit crisis has stopped a lot of lending overall and small apartments and units have been mostly affected by this compared to the other types of property investments. The lender's mortgage insurance is the biggest stopping point. They impose all the restrictions that are passed onto the bank. It requires a hard work if someone wants lender's mortgage insurance.

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

Some of the hurdles that might come in the way are the size, title, location in the development or complex, changing from commercial zoning of residential and the number of apartments in a development. The size might not be important to the lender, but the mortgage insurer has the minimum requirements on the floor space area. It is better to avoid the studio apartments or units with floor space less than 50 square meters. In fact, the living area alone should be 50 square meters, excluding the car space, balconies, etc. There might not be restrictions regarding the floor space limit by the bank but the lender's mortgage insurance might fail the approval for that reason. The strata or stratum title is acceptable as group titles. The mortgage insurers are not generally concerned about the company title and lend. Location in the complex or development is an important factor. Some people prefer a god area in the development, some like busy intersection, whereas others want shaded noisy area near the local highway. Hotel conversions, serviced apartments or holiday lettings are categorized under different lending requirements. If they are being rezoned, the finance may not be approved till the conversion is complete, that too, if it meets the requirements of the lenders and the council. The number of apartments in a development is also of prime importance. There might be a limit on the number of apartments within one development or area that can be put up for mortgage insurance. There might be limit by the bank on lending more than five apartments in one development or limit lending for no more than one quarter of development.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: April 7, 2017 — 7:30 pm
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