One day I was sitting with my friend Ismail. who is a real estate agent, realtor. We were talking and I just ask my friend. What points one should investigate when buying a Rental property. Then he told me in detail about what most important things to look for before buying Rental property. So now I am going to discuss all these points with you. May this point help you all in making a decision. When buying a property for income purposes.
Are you going to buy rental property to increase your monthly income? Also, isn't your investment portfolio increasing? Before buying the rental property you must do your research. Also, analyze how much capital you have to invest. Where to invest in the most important point. Investing in the property Is rewarding if you take the right decision at the right time. Doing a real estate business is a hard thing. Because it needs attention all time and proper market updates. You know what price now in which area and when it going to appreciate.
Research of project and understanding the Market.
After all the above discussion now moves to the next part. That is you must do your research before consulting any professional Real Estate Agent, Realtor. Because when you have the proper market knowledge and market updates. Then you take good communication with the realtor. If you don’t have proper knowledge of the market. Then the realtor may give you a bad thing in heavy amounts. This thing will affect you in long run. You must analyze the location, size, and facility that are available in that said area. The location matter most because then you decide whether you look after your property. May you need some property management company services to manage your property. For managing rent and all other wear and tear-related thing.
Top 11 features of Rental Property
Now we are going to discuss some important points one should investigate before buying an Investment Property.
Area:
Before buying a Rental Property you must survey the market. That rent is coming from other buildings in the same area. Is it worth buying the Property? After doing this research you can make a healthy decision. About buying the property is worth it or not. And also Is there any school college university and business available. Because when all these facilities are available then your property is going to easily rent out on handsome amount.
- Taxes:
Before buying any type of Rental property. You must consider what Property Taxes are prevailing in the market. Because all areas have different tax rates. But you take into account that in some high tax areas there is also high Rental Income. Buying in that area may help to boost your monthly income tremendously. You must visit the local available tax office for confirming the prevailing tax rates on rental property.
- School colleges Universities:
School colleges and universities are the most important places in the area. If schools and colleges are available in the locality then your Rental property going on rent easily. Families prefers to live near to school colleges as it is easy to reach.
- Infringement:
The most important point that I must look into when I buy Renat property. Is the crime rate in the said area where I am interested. More criminal cases in the area going to devalue your investment. Also, be unattractive for tenants. When tenants are not interested in the area. So you can not get rental income. Your original money also going to be stuck. Because it’s hard to sell this property in the market again on good value. Maybe you lose your amount of original capital.
- Facilities:
Before deciding on buying rental property. You must go on a walk in your chosen area. So you can find what facility is available nearby. When you do this you may find a more attractive thing about the area. That may attract you to close your deal. And you buy your dream Rental property and update your portfolio of investment.
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Development work:
When you take a tour of the area. You also saw many things like what is status of development. Is the local development authority is working properly on development works? Road network is most important in any society. Because it connects different cities and decreases the time to travel. If infrastructure development is good then it is a good time to buy that Rental property.
- Working space:
One should look into It that is any working space is available in said area. If the job opportunity is high in the locality then more tenants are available to buy your property on rent and rental value is also good. The easiest thing to find about the job market is to search on the internet so you can find easily what the market is all about. Is it healthy to buy a rental property or not.
- Durability:
Here we take durability in terms of high sale and purchase. This means that the property owner first decreases the rent and with the time suddenly increasing, the rent may lead to disappointment of tenants and the tenants are not more attractive to that market.
- Coming Rent:
You are buying the property for rental income you must know about what rent coming from that area where you are interested in buying the property. Every person who is going to buy a rental property must increase their income that why buying rental property. So looking into coming rent is the most important part. Is rent according to property value or lower than the property value?
- Disaster:
When buying rental property must look at what type of material is used in construction. If construction material is not good and any natural disaster you may lose your property. Natural disasters may be like a flood, earthquakes. If good quality material is not used then you must have to buy insurance which is another expense that is deducted from your rental income.
- Resale value:
Last but not the least, must look what the resale value in a market where you are interested to buy the rental property. Because whenever you need money in future in an emergency and your money get stuck so it bad part. So just look at the liquidity of Markey that whenever you float property in the market so it takes less time to sell and easily you get your money back on profit or at least you get the money that you invested.
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