Key Factors To Consider When Buying Investment Property
Bulgarian Property Investing - For Profit
Bulgarian Property Investment Tax Basics The Bulgarian property tax structure may appeal to you if you are sick of paying inflated local fees in your area and are looking for something better. Many foreign investors and second home owners buy...
Buying investment property with discretion is perhaps a foolproof way of accruing long-term wealth. With the stock markets being overly volatile the investor is anxious and often seeks haven in real estate, which unequivocally involves less uncertainty than other investment options. While real estate has drooped a bit from its zenith during the late 1980s, astute real estate investments can still deliver significant gains. In general, buying investment property gives you access to three benefits: yield, capital growth, and tax advantage through negative gearing.
Investment properties are also known as Non-Owner Occupied properties. Since every investor looks for high capital growth, buying investment property in a developing area does make sense. Experienced investors state that suburbs located within a 10 km radius of a cityís hub can be regarded as developing areas. It is recommended that you explore the area prior to buying investment property. Ensure that the basic amenities and emergency provisions are easily accessible to potential tenants. This would result in healthy rental returns and minimal vacancy periods, if any.
Analyzing an Investment Property
The real estate market is huge in the United States right now. Almost anywhere you go, you will hear about the appreciation in investment properties and the great equity owners have built in their real estate investments. Make no mistake, a good ...
investment property, you must consider that renting an apartment unit is much easier than renting a separate house. Moreover, the expense of rectifying problems, such as replacing the heating ducts, is shared among the several owners in the apartment.
The locale also plays a crucial role in determining which property to purchase. Properties with a panoramic view are often more desirable than others. Undoubtedly, the rental income from such a property would be huge. But there is no point going overboard and purchasing an expensive property, prior to ensuring that potential tenants can afford renting such a property.
If capital growth is what you look for in an investment property, then seek a property that can be sold quickly. Augmented properties, such as a unit with a balcony, garage or laundry, are rather alluring and can be sold with ease.
While buying investment property with the key intent of renting it, you must bear in mind that there might be periods when the property is unoccupied, either because of repairs or lack of tenants. Therefore, you must have a contingency plan for such vacancy periods.
Investing In Your First Property
For those that are about to purchase their very first property, it is very exciting and quite risky. Some people purchase property purely as an investment, however, and with property prices on the rise, that might be a very good idea. Moreoever, you...
investment might not seem all hunky-dory during the initial few years. But after a few years of holding a property, you might hopefully see yourself from being negatively geared to being either neutrally geared or positively geared. That is, your returns would be higher than your operating expenses. This is because the rental income would increase on a gradual basis, keeping pace with the market sentiments. Over time, you would also generate extra capital in your investment property.
On the whole, buying investment property can be a profitable venture if itís done astutely.
Copyright © 2006 Joel Teo. All rights reserved.
About the Author :
Joel Teo writes on Ahwatukee Real Estate Investment. Learn more about Property Investment by signing up for his free Real Estate Investing Ezine
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