5 Things To Consider When Buying An Income Property
In this blog post, we’re going to be discussing 5 things to consider when buying your first income property.
Location
Location is one of the most important factors when it comes to investing in real estate. You want to pick a spot that has potential for growth in terms of property values, as well as other factors such as economic stability, population growth, and investing in an area with these positive traits will help ensure that your investment will increase its value over time. Location can also dictate what type of tenants you’re able to attract, so consider who your ideal tenant is first.
Local Market
The next thing you want to consider is the local market conditions before investing your hard earned dollars. It is important to do some research on the local market conditions and to get an understanding of what kind of return on investment you can expect. Look into the recent sale trends in your target area. And look at the reports or statistics that can help you better understand how the market is performing currently, and what kind of future potential it holds for investors.
Finances
When making real estate investments, having good financial planning is essential. Make sure you know exactly how much money you need upfront for the purchase price, closing costs, repairs and any other potential costs associated with buying a property. Always get prequalified for financing so that you know exactly how much home you can afford before starting your search. A purchase strictly for investments typically will require a 20% down payment. However, if you’re planning to live in one part of the house, your down payment could be significantly lower. As a bonus, don’t forget to ask about the current market rate for renting. This can help you get approved with your bank or broker.
Rental Potential
If you’re looking at investing in rental properties, then it is important to assess whether or not the location will be attractive enough to tenants. Consider things like nearby amenities such as parks or shopping centers, schools, public transportation, accessibility, crime rate, etc. All of which could affect a tenants decision making process when choosing where they want to live.
Professional Advice
Don’t forget that professional advice can go a long way during this process. Whether it’s an experienced realtor who knows a local market inside or out or an attorney who can provide helpful legal guidance. Talking with someone who has expertise in this field can save you time and money down the road by avoiding costly mistakes or overlooking important details along the way.
Remember purchasing a real estate investment requires careful thought and consideration to make sure you take all those points into account before making your final decision.
Thanks for reading this blog post, we hope you were able to take away some value from one of the five things to consider when buying an investment property.
If you’re looking to buy or sell real estate in Prince George, give us a call at 778-234-0845 or visit our website.
About One Oak Real Estate Group
One Oak Group is a boutique real estate agent group located in Prince George, BC, offering quality service, support, and advice for our clients during the buying or selling of their homes. We believe that every customer deserves to be treated like they’re our number one customer, and we aim to go above and beyond what’s expected of the average real estate group, to make your experience one you’ll never forget. Work with us today.
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