Property investment has been well-known for its high-return profit. Many businessmen go succeed with the help of this investment including Sean Conlon, Charles Cadogan, Donald Trump, and more. For people who have no experience or knowledge in the investment https://ringcincin.com/, there are some important factors to consider when investing in property. To succeed, be aware of these factors.
-
Investment goal
What is the aim of your investment? For some, property investment is aimed to be saving. The property will be sold for several years afterward when the price is raising. Meanwhile, others invest in properties to have a monthly income by renting them.
Those different goals suit only certain types of property such as residential, commercial, industrial, retail, plantation, land, and more. Residential properties like apartments are good for monthly income investment and land properties suit saving goals. Those are just some examples of how the goal affects property investment.
-
Location and condition of the property
To reach the goal, finding the right property is the key. Location and condition can be the criteria to decide. Some properties might have easy access to public transportation or be nearby centers. Viewed by its location, the demand and the potential tenants of the properties can be predicted.
After finding a property with a strategic location, the condition of the property is the next thing to be considered. In poor conditions, some properties may need restoration or rehabilitation. It should be included in financial planning. Another aspect to examine is the legality status of the property whether it is legally registered or in dispute. To avoid scam, you do have to crosscheck this aspect.
-
Financial planning
This factor is interrelated with both the goal and condition of the property. To invest, you need to prepare the capitals and plans to reach the goal. In making the plans, also consider the tax, the maintenance cost, the renovation cost, the number, and the source of capitals whether they are from loan, inheritance money, and others.
To cover those costs and to reach the goal, there are many plans. One of them is by applying the 1% rule. For example, a property that costs $500.000 in total should be rented at least $5000 per month. Therefore, the capitals can be covered in a year.
When selling properties, also consider the inflation and the properties’ value. Of course, those rules cannot suit everyone’s condition. Hence, there are more plans that you can build regarding your condition.
-
Property management
A property should be maintained to keep its price and value. The maintenance includes cleaning, renovating, landscaping, and others. For the self-use and rented properties, it might not be a problem. Yet for buy and sell properties, there must be its care management.
The maintenance can be done by yourself or with the help of agencies. The help of agencies does not only cover the property care, but also property marketing.
