For decades, property investment has been an excellent solution for people who want to solidify and enhance their financial future. Investing in the right property yields a great return on investment and with the rental rates skyrocketing across the country, you’d be bonkers not to cash in on this hot (and provenly profitable) investment trend. Here are 4 great tips that will provide some clarification on the investment process and give you the momentum you need to acquire a profitable investment property.
#1 – Learn What Makes A Good Investment PropertyNot every property is going to deliver a positive outcome. Some, no matter how beautiful or newly built, are just destined to fail. You can avoid this situation altogether by knowing what makes a good investment property. Factors to consider when evaluating a prospective investment property:
- Appreciation: Will this property value rise? How much so overtime? What costs will the investor endure to ensure appreciation?
- Cash Flow: When rented, will the income generated exceed expenses?
- Principal Reduction: If you use a loan to acquire the property, how long will it take you to actually own the property? How will a tenant’s monthly payment affect the loan?
- Property Taxes: How much money will you be losing to taxes? Are higher taxes justifiable if the property resides in a good neighborhood?