Many people consider investing in real estate one of the most effective and easiest ways to see a return on your investment, especially when it comes to securing your future and the future of your family. However, it is not something to undertake lightly and you should be aware of exactly what it entails before you take the leap.
Here are four of the most important elements to consider when investing in real estate.
1. What location do you want to buy in?
The world is your oyster when it comes to this decision, but you need to make sure you make the right choice for you and the type of landlord you want to be.
If you are planning on being a hands-on landlord, and hate the thought of not being able to check on and keep an eye on your investment, then you should choose a property that is within travelling distance to your current home.
However, if you want to buy in another country such as the UK, either so that you can use the property as a holiday home or because you think the rental income will be higher, you should consult London property experts before making a purchase.
2. How much do you want to spend?
Buyers, and in particular first-time investment buyers, can get carried away either at real estate auctions or just when placing a bid over the phone. It is important to remember that you are looking to make an investment and therefore you need to think smart.
The first step is setting yourself a budget. You can give yourself a little leeway for the perfect property, but it must be within the parameters of what you can comfortably afford.
3. What type of real estate do you want to buy and who will your tenants be?
Do you want to buy a family home or a large residential property that will be suitable for multiple tenants such as students or young professionals? If you are investing for the first time, consider whether you’d feel more comfortable buying a smaller property that requires less maintenance and less overheads such as a flat.
Different types of real estate and different tenants all have unique needs, so you need to decide what type of challenges you are willing to take on as a landlord.
4. Are you aware of all the legal requirements?
Being a landlord is not as simple as just buying a house and finding tenants; there are many responsibilities that you will need to take on, with one being making sure your investment is safe and complies with legal requirements.
Some of the regulations you need to adhere to include;
- Having the correct gas safety certificates
- Having the correct energy performance certificates
- Having regular checks on all electrical appliances
- Ensuring that you look after your tenants’ deposit
Once you have worked out all of the above, then you are ready to invest in real estate; good luck with your search and in all your future investments.
Add Comment