|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.|
A commercial real estate is undoubtedly a profitable investment. However, getting the right property deal is not an easy affair today. A first time investor needs to be careful while deciding on a property to invest in. A property decision made in haste is a risky propositon in the real estate market.
Here are a few tips for first timer investors.
1. Research with trusted sources
Adequate research of all commercial plots available within the range of the investor is required before taking any decision. While researching, the reliability of the source is a factor that must be given its due. The first time investor must consult an expert in the field or better yet, proffessional firms that have been referred by friends or souces they trust implicitly.
2. Keep options
Although the investor needs to be straight forward in his or her intention to invest in a commercial real estate, he or she needs to keep a wide array of options open in terms of spot, shape, age and access to secondary facilities of the property. A very specific choice of real estate might be difficult to procure and even prove to be less profitable after the investment. A real estate management firm like Madison Management services can help the investor in making a comparative analysis of various options.
|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.|
3. Review the location
The success of any commercial investment in a property arguably depends on its location. Its proximity to the city centre, accessibility to public facilities and the quality of the neighbourhood plays very important roles in deciding the marketability of the real estate. Moreover, the preferred location for a property would also depend on the way the investor wants to utilize the property. Management services like Madison Management can provide an overview of the pros and cons of any particular location.
4. Inspect the property
A thorough personal inspection of the property must be conducted before giving one's opinion on investing in the real estate. The investor needs to carefully check for damages, functionality of machines and facilities, the condition of sewage and water networks and the maintenance of gas, electricity and internet connections. Not a single flaw should be left unheeded.
5. Investigate past tenancy
Before taking the final decision of investment in a particular property, the investor needs to conduct an investigation on the history of the property. It is not impossible for a good property at a prime location to have been previously associated with negative activities.
|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.|