In the face of adversity, with the current downward spiral trend of the economy today, there is still hope for investors and it is found in the real estate industry. Price of properties is dropping and a lot of houses are being foreclosed by banks because the homeowners cannot pay their mortgages anymore. If you want to invest in buy-to-rent houses, this is a good time for you. Property management firms are showing high occupancy levels for rental properties and it is high time you take advantage of it. So you will not go blindly into the buy-to-rent properties, here ten tips to assist you.
1. Location is very important for the property you plan to purchase. Choose an area that is near schools, the market, commercial centers and business districts. It is also important that the neighborhood is a safe place to live in.
2. Once you made a list of the properties you like, you then have to go and view them.
3. A financial adviser is handy so if you do not yet have one, it is suggested that you get one before going into any business deal. Financial advisers can discuss to you the mortgages you can get with your current budget and they can also get you the best deal.
4. If you find the property that you think will give you the best returns for your money, they you should waste no time to make an offer. Remember to start low so you can increase it if it is turned down the first time. That is the way to get a good bargain.
5. Do not tend all the paperwork by yourself if you are not knowledgeable in the real estate transaction. Seek the help of a solicitor so all documents will be in order. This will also lessen the processing time span of the deal.
6. Get proper valuation and survey for your newly bought property. This means you have to take some out of pocket expenses but all is essential so you can price your rent right.
7. Decide whether you will manage the property yourself or you will hire an agent to do so for you. Both options have their advantage and disadvantage so you better weight them out before reaching your final decision.
8. Most properties need some form of repair or renovation before they can really start to rent it out. Go to a reliable builder or home decorator. Keep all your receipts so you know how much you are spending for the repairs and renovation. Do not overspend.
9. If you plan to rent out your house as furnished, make sure you buy the right kind of furniture. Keep the colors neutral so you leave space for the creativity of the tenants. Also, do not let your taste influence the kind of furniture you will buy.
10. Make sure your tenants agree and understand all the premises stated in the contract to avoid misunderstandings in the future.
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