Are you looking to buy high returns real estate investment properties? If this is the case, you should carry out thorough research. Investing in real estate can be a daunting task for any investor. There are many factors that can affect your real estate investment and make you lose your money. The good news is you can make a great investment decision by following the tips below.
Choose the Right Property
You may be considering to use a real estate agent to help you complete your property purchase. However, it is prudent to research the properties available on your own. When you have an agent, you can succumb to the pressure of buying an investment that is not suitable for your goals. A good rule of thumb is to find all properties that are within your budget and find out their pros and cons based on your requirements.
Before starting to look for property, you should know whether you will be actively managing it or will hire a third party to do the work for you. It’s advisable to buy a property that is near where you live if you will be managing it on your own. On the flip side, location will not really matter if you will be hiring a real estate company to manage the property on your behalf.
Where is the Property Located?
You should also consider the neighborhood where the property you want is located. The quality of neighborhood can affect things such as the vacancy rate and types of tenants you will find. For instance, your tenants are more likely to be students if you buy a property that is near a university. Moreover, you will also have high vacancy rates, e.g. when the colleges close for the holidays.
In some areas, there may be restrictions or obstacles put on rental property owners. For example, there may be high fees charged for rental properties and a host of other bureaucratic hoops to pass.
Property Fees and Taxes
You should also find out the number of fees and taxes you will be liable to pay when you purchase a particular property. The amount you will have to pay as taxes may vary depending on the area where your property is located. Find out how your property income will be impacted by the taxes you will have to pay. If your property is situated in an area with high net worth tenants and low vacancy rates, then high property taxes may not really be an issue. However, it’s important to determine the impact of the fees on your revenue before settling for a particular property.
You can visit the municipal’s assessment office to find out the amount of taxes you will be liable to pay.
Consider the above factors when looking to buy high investment returns properties.