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Thinking about buying an investment property to rent? Investing your money is the best way to make sure that you are in a stable position as you get older and you have plenty of money to take care of your family. Property investments are one of the most popular options right now because they’re relatively safe compared to other investments. People always need housing, and right now interest rates favor buyers.
However, you’re putting a lot of money down when you invest in a property and that puts a lot of people off. It’s a myth that real estate investing is an easy way to make money and there are some big mistakes that you can make. If you do it right, it’s a great investment for your future. If you think that property investments might be for you, here are a few important tips.
1. Save A Big Down Payment
Minimizing your monthly costs is the best way to make sure that you get good returns on your investment. The best way to do that is to put a big down payment on the house. The more money you put down now, the less you’ll pay each month in mortgage payments. A lot of people go wrong here because they’re eager to get started and they rush into it. But it’s a lot better in the long term if you wait another year or two and save up some more money for the deposit.
2. Shop Around For Loans
As well as saving up a big down payment, you need to make sure that you shop around for home loans to get a better rate. When looking at investment property loans, always take your time and if you can’t find a good deal, don’t be afraid to wait a while until the market changes and you can get a better rate. Sorting out your finances and paying off any debts will help you to get a better deal as well.
3. Choose Tenants Wisely
Once you’ve bought your property, it’s time to find tenants. If you pick the wrong tenants, you open yourself up to a lot of problems. Dealing with tenants that cannot pay on time or don’t look after the property very well creates more work for you and costs you money. But if you have tenants that never cause problems and always pay up on time, you don’t have to do much at all. That’s why you always need to check your tenants out thoroughly before making your decision.
4. Stay On Top Of Maintenance
Some people make the mistake of thinking that real estate investments are very hands-off once you move tenants in, but that isn’t true. It’s up to you to keep the property in good condition and handle any maintenance that needs doing. You will also need to be available for your tenants, which is why it’s a good investment choice for couples because you can split the duties between the two of you. When it comes to maintenance, you need to keep on top of the small jobs because if you leave them they will only get worse and you will have more expensive repairs to deal with.
If you follow these tips, you should be able to invest successfully in a property without any disasters.