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5 Tips to Reduce Stress When Buying Your First Property Investment

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Investing in properties is one of the best investments you can make in life. But like any other investment, it is essential to do your research before investing your hard earned money.

It is a common misconception that property investment always offers you good returns. You need to consider many factors while investing in a real estate. Here are 5 tips to reduce stress while buying your first investment property.

1. Choosing the right property at the right price

Investing in real estate is all about buying at the right price, at the right time. It is beneficial to buy a property below the average market price, particularly one that is likely to increase in the future.

The prices of real estate undergo fluctuations according to market conditions. If you don’t know about the real estate market trends and analysing the value of a property, consider enlisting help from a real estate expert. A real estate expert can help you to buy the right property at the right price.

 

2. Pay your debt first 

Most investment savvy individuals are already with debt for multiple assets. However, the average person tries to avoid the debt where possible. If you have education loans, unpaid medical bills, or your teenage children will be soon going to university, now might not be the right time to invest in a investment property. You should aim to pay at least 75 % of your existing debt before investing in an estate.

 


3. Rate of interest

Financing a rental property is expensive as the interest rate on investment properties is higher than the traditional mortgage. You will need a low mortgage payment, that won’t eat into your monthly profit to much extent. Before finalising an agency for financing your investment property consider comparing their interest rates and seeking professional advice.

 


4. Get the right financing and cash flow

Choosing the right lender is one of the best real estate investment tips we could provide. Most financing companies require you to put down 20% of your total loan amount. The interest rates are also higher than regular rates.

Calculate all your costs and then consider your mortgage repayment with insurance and taxes before choosing to accept a loan.

 

5. Know what will rent and how much

Different properties can be different types of real estate investment. You might need to check with the real estate experts which kind of property is easy to rent and what could be the monthly amount of rent you might receive.

Research online classifieds for similar properties and compare rental prices. This will give you a strong indication of what you can expect to receive.  You can also call on the advertisements and talk to the landlords to know an estimate of the rental income you could earn by renting your property.

Buying a rental property involves a lot of research. The real estate tips given in this post can help any individual to make smart and researched decisions when buying their first rental property. Doing thorough research to find rental properties, calculating interest rates, mortgage amount and potential rental income can help any investor in purchasing a rental property.

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Topics: Property Advice, Property Services, Inspo, Property Management Advice, Home Improvement

Rafael Niesten

Written by Rafael Niesten

In his early 20s, Perth local Rafael Niesten, won a scholarship to study in Canada, with that came the opportunity to volunteer at a local radio station. That spawned his entrepreneurial streak, returning to Perth in 2001 he set up community radio Groove FM. More by luck than design, they became successful, too successful as they took a significant chunk of the Perth Market. This sent up the red flag with his commercial competitors who saw to it that he came before the Australian Broadcasting Authority and on technicalities such as the number of volunteers he was forced to move on. He received the citizen of the year award for Western Australia (youth) and was a finalist in the Australian of the year awards (Youth). Falling on his sword he turned to running small and large scale events, all the while buying, renovating and selling properties. Buying and selling land and renovated houses provided a grounding in the property industry. He founded a cloud based medical grade voice recognition company, followed by co founding the first true cloud application for private practice in the health sector. He successfully exited these ventures at the end of 2016 and began building Bricks+Agent.