Top Property Investment Tips For 2019
If you’re looking to get into property investment, it is highly recommended that you don’t just do so blindly. There are many things that can go wrong if you just purchase a property without doing your research in the hopes of flipping it or renting it for a profit. Property investment requires a lot of research and due diligence in order to be successful. So, we will take a look at some of the best property investment tips for 2019 so that you have a much better chance of being profitable.
The first tip is to have a tight handle on your financials and know exactly how much you can afford to spend on a property. You need to keep in mind your current debts, whether or not you’re still paying off for your own home, credit card bills as well as calculate your future debts and cash flow if you were to purchase a property. Every property that you buy will have its own monthly costs in order to upkeep or run it and you should be closely aware of these numbers. Also, if you intend on getting financed by the bank or any other financial institution for your investment, then you should get pre-approved first before you start looking. This will ensure that you know your exact numbers on what you can and cannot afford.
Next, you need to be realistic about your expectations. Many people get into property investment thinking that it is a path to quick riches. However, this is only possible during a real estate boom and if there is one, then you should take advantage of it to buy, renovate and quickly flip for a profit. However, if there isn’t a property boom, then you will likely need to buy and hold onto the property for years before you can sell it at a profit.
Thirdly, you need to have building inspections done on any property that you want to buy. This is extremely important since a building inspection will let you know the true state of the property and if there are any serious issues such as mould, fire or water damage, issues with the plumbing etc. This will ensure that there are no surprises when you start doing renovations, which can possibly cost you many thousands of dollars, which will drastically eat into your potential profits.
This means that you need to use your mind and logic when considering a potential property and not just your heart. Many people buy a house from their heart, meaning that they fall in love with it and don’t fully acknowledge its issues and flaws. However, if you want to be a good property investor, you will need to separate your emotions from fact and make your decisions solely on whether the property is a good investment or not.
So, as you can see, property investment has many challenges, but if you are aware of all of them and keep them in mind, then you can potentially be very successful in this business. Be sure to continue learning and your knowledge will ensure that you make great investments.