As property is turning into the most popular investment these days, most of the people with sufficient capital are looking for the opportunities to start their very first property investment journey.
As property investment is relatively low risks compared to stock market and start a business. Therefore, most of the youngsters are being encourage to get use of their first capital into property investment instead.
Before decide to get into it, the first step you need to learn is how to buy an investment property, what are the things you should look for when selecting an investment property and etc. This step is extremely important as it can affect your future profit if you invested in the wrong property. Here are the top 4 tips for first-time property investors to buy an investment property.
➊ Understand the current property market
Firstly, you must do the research of property market before picking a property for your first investment. You can get the information of current property market by joining property club, attend some seminars or just buy some books to read much about the basic of property investment. This can let you to identify the market opportunities and the recent deals in the property area.
Besides, you will need to learn more about the financial factors of a property investment and basic investment strategies. You got to be sensitive on current property market and economic trend, and know the most popular property locations.
➋ Set out your investment and financial portfolio
While hunting for potential investment properties, you have to set out your investment and financial portfolio. What kind of property investment strategies you going to use? Invest in rental property or flipping property? Prefer short-term or long-term investment? Target at residential or commercial property? How much is your capital right now? What is your budget? Which types of property that you’re able to afford? How much loan you can borrow from bank? so on and so forth.
Once you set out your investment and financial portfolio, you have to stick with it. Think carefully about the characteristics unique to each investment property that will make your strategy successful.
➌ Search out the financial resources
The process of choosing a right investment property will seem stress, complicated and confusion for first-time property investors. In order to have an exact picture of which type of property you should look for, you have to get the pre-approval letter on bank loan. With pre-approval letter, you will know the approximate loan amount to finance the purchase.
Besides, you have to also need to search for the best possible bank loan, you may first ask your loyal bank. It is advisable to search the bank loan from multiple different banks, for yourself to make the comparison.
➍ Property Location is extremely important
Lastly, location, location, location. Location is the most important factor once is comes to property investments. A perfect location can bring you a significant profit, while a bad location can invariably lead to failure. Economic stability, living standards, neighborhood and future development can define whether this is the perfect location to invest in.
For example, if you’re investing in rental property, it is essential to invest the property in a smart neighborhood, with amenities, hospital, school, public transportation, hypermarkets, shopping mall and etc, otherwise your property will no be an attractive property for potential tenants.
Investing in property is not as simple as you think even you invest in rental property. You need to spend some time to do your due diligence on the property to figure out whether this property has better appreciation over years as well as its rental yield. Always do your homework, then you can lead yourself to the success path. Happy Investing!
Visit WMA Property to get more guidelines and tips of property investment and property purchase.
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