Looking For Good Returns? Here's The Mantra
If you are looking for investment opportunities, there are ample options out there such as mutual funds, selling and buying of public stocks and shares of companies and of course, real estate. But among all these, it is real estate sector which is considered as a safe option owing to low risks involved, tax advantages and guarantee of long-term appreciation. Property investments guarantee short-term as well as long-term capital growth.
Choose a growing area
The common mistake made by an investor is selecting a stagnant market. Certain locations have higher growth potential compared to some other regions. Select an area with key features like good infrastructure and amenities where there are more chances of retaining and growing in value. Even if there are no such features at present, it should have a scope of such an expansion plan. Presence of schools and hospitals and excellent transportation facilities near the property will augment the returns on investment.
Conduct proper due diligence by looking at several investment properties available in an area. It is advisable to understand the market dynamics of where you are investing. Undertake research of the average prices in the location and track the developments happening in the neighbourhood. For instance, a major construction near your property could hamper the prospects of finding a tenant at the right price. Or, a planned bypass in the area will minimise traffic and this could increase the value of your property much faster.
Select the right mortgage
Financing an investment property with the right loan or mortgage is of utmost necessity. Variable rate loan and a fixed rate loan are both ideal options but make the selection by deciding what is most suitable for you.
Hire an experienced property manager
Select an agent who can advise you to effectively manage your tenants, get best possible value from your property, property laws and rights and conduct reference checks. Perform regular independent inspections from your end too to ensure your tenant is managing your property.
Keep property attractive to renters
Monitor the condition of your property to check for any possible damages and need for repairs. A well-presented property is sure to gather more tenants and will also maximise your selling price.