As 2022 draws closer, it is becoming more and more important for young investors to start planning for their financial future. One of the most popular investments in modern times has been property investment, which is only set to grow in popularity over the next decade. Here are four tips that can help you get started on your journey towards financial stability!
1 Buy to Rent Remains the Most Profitable Option
One of the most popular forms of property investment is buying to rent, where an investor buys a house or apartment to let it out. This trend had only increased in popularity since 2006 when interest rates dropped off and made mortgage repayments cheap for first-time buyers who could not afford large deposits. Even now, there are still many opportunities for young investors looking to buy properties that they can then use as rentals.
The main thing here would be to research what kind of houses you should be focusing on (i.e., ones close enough to commercial areas, so potential tenants have plenty of job opportunities). It might also help if you could find tenancies before people move in – this will give you a buffer in case the first tenant decides to leave early.
2 Renovate Properties to Boost Value
Another great way to make money from an investment property is by doing it up and selling it for a higher price. For anyone who would like to try out renovations before investing, there are options such as buying a cheap rental property to fix it up and then selling that house (or even renting it again). This can be done without any special licenses or certifications – you need someone willing to invest in the initial renovation costs!
This is something worth trying out first if you’re unsure whether or not your renovation ideas will work. But, of course, this may only result in breaking even rather than making a profit, so keep this in mind when looking at properties to buy.
3 Use only Reliable Real Estate Agencies
Another factor that can make or break your property investment is the company you use to buy it. Since most real estate agencies are only working with a small margin, they will often try and sell their properties rather than those of other companies. Unfortunately, this means they might not be as honest about repairs needed on older houses – this could mean spending more money fixing them up later on!
The best option would be to find a real estate agent specializing in selling rental homes without requiring any renovations (i.e., new investors). This saves time and makes sure that issues like needing expensive plumbing work don’t come out of anywhere.
4 Remember About Property Maintenance
Lastly, even if you find a great real estate agency and manage to buy a property that requires very little maintenance, it is still important to remember the upkeep. Many young investors forget their properties need regular cleaning and minor repairs such as changing light bulbs or unclogging plumbing. It would also be worth checking with your insurance provider whether or not they will cover any damage done by tenants (i.e., holes in walls).
You need to remember that owning a property investment is like running any other business – for it to be successful, you need to keep up with maintenance and repairs.