1) Before you going to choose the dream house for your investment, remember that you must have the money to make the purchase. By lending, you must not allocate more that 1/3 of your own income to the borrowings every month.
2) After you have determine the borrowings and the amount of cash you have to put in, have a search at your area first because this is the place you understand the most compare with other people. Remember that don’t get caught of the “obvious prospects for physical growth in the property because it does not necessary translate into obvious profits for you”.
3) Now after you have your properties, make sure it is below the market value before you purchase. Remember that the higher you pay the lower return you will get.
4) You also must make sure that the area of your properties is 90% occupied. Therefore it is easier to get a tenant for your properties. You also don’t wish to buy a property which the area is deserted and can’t rent your property out.
Remember to prepare yourself for the worst and pay all the expenses of your property if there is no tenant.
This is a very informative post as I am thinking of investing in property soon. I have bought already one third of an apartment in London with a friend and we rent it out. I pay an excess of 200 bucks a month over and above the mortgage that is paid by the rent.
ReplyDeleteThx.. that's cool.. keep me update if on your progression and if have any problem maybe we can share it together.. & 1 Question.. does the apartment has a strategic location?
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