Property Investment.

So you own your own home and are keen to grow your property portfolio but don’t know where to start?  When you decide to invest in real estate, there are plenty of ways in which you can tackle the task to make sure you get the best bang for your buck.

Is it for you or for someone else?
Consider whether you’re buying something for yourself or whether you’re purchasing something which will primarily be used by others – such as a house, apartment or commercial building that you’ll be renting out.
Either way, this can be a great time to get into the market and start buying properties that you can fix up to use and/or resell later when the market improves.

Look for the real investment.
Before signing on the dotted line, a home inspection is critical! You want to make sure that any home or commercial building you buy is in good knick and worth the price you’re paying for it – even if it’s a “renovator’s delight”. If you buy something that’s not up to scratch you could end up spending thousands of dollars to fix it and may never get your investment back when you sell it on.
 
To rent or not to rent?
Renting out your investment property can be difficult, particularly if it needs renovating or doesn’t have much to offer to a prospective tenant in its current state.
If you intend to rent out your investment property from the get go, be sure you can handle your tenants yourself or research property managers to find a middle-man your tenants can deal with directly.
No matter which option you choose, buying a good property that you really like and that will be popular with others is a sure way to keep you happy and keep your property rented. 

Get value for your property dollar.
Once you know you’re paying a good price for your investment, you’re free to move forward with your purchase.
The current property climate is ideal for people looking for their dream home or an investment in real estate. In many states houses are selling for much less than what they were selling for at the height of the housing bubble.

With property prices and land value expected to go back up in the very near future, buying an inexpensive property now could see you getting a lot more property for your dollar – seeing you with more equity in your property in the future too.

The key with investments though is that there are no short term wins. Take a long term view when it comes to your property portfolio and realise that investing is property is a long term strategy; there will be highs and lows which come with this too. Like all investments it pays to do your homework before you take the plunge into property investment.

May 2011