The affordability of housing is changing each year, however in every case we will have to admit that people will always need a home to lay low. If you plan on becoming a landlord, then you will need to be well-prepared for what lays ahead. The following tips will give you what you need to know so you won’t drop the ball when it counts:
• You will need to consider whether you want to work with your own property or to buy a cheap, fixer-upper one. You could do your best to repair it then sell it or even rent it out. You should keep in mind though that this type of approach will require a lot of work, money and long hours until its done. Its a serious job, but also one valid way of approaching the subject matter.
• If you don’t want to deal with so much work, you can approach things from a different angle – turnkey property investments. There are companies working on buying out cheaper housing, fixing them, then securing tenants for rentals, followed by looking for investors willing to purchase them and enrich their portfolios. These companies may also handle much of the management for a monthly fee, allowing you to kick back and reap benefits for a percentage of what you gain.
• Before you decide to buy a property, you must determine whether this will be a good idea, considering the current market you’re dealing with. You should begin that by checking out and calculating the capitalization rate of the local market, which measures the return rates of investment properties based on the annual rental incomes, divided by purchase price. Higher rates means a potential higher return, paired with higher risks however. If you’re not sure how to approach this, then you can always consult a real estate agent for professional insight.
• Location also carries great importance to what you want to work with. If you’re planning on the hand-on approach, then you will need to choose an area where commuting will be easy. You should avoid any markets where you have high unemployment rates when possible. Make sure you investigate and do research on local economic data so you’ll be prepared. You should focus on possible markets where you have economic growth, positive migration trends and possible flow of people on a seasonal basis. College towns have a great advantage in that manner, as there will always be students willing to rent out homes or rooms, allowing for a long-term investment solution with greater ease.
• You could possibly find the best deals from short sales and real estate owned properties. You could consider using a real estate agent who works closely with banks, as they will take care of much of the paperwork. You should avoid buying the cheapest on the market however, as that might not always be the best choice.
Tips on relocation read at http://www.removalsmanandvan.org/removals/SW11-relocation-