5 Lessons Learned For Buying Investment Property

Oct 19 2011 / 4:41 am Was written by Atwell & Co. Comments Off

graph imageThinking of getting started in the investment property industry?  Perhaps you are enticed by the low prices, mortgage rates and the ability to be your own boss.  It’s an exciting occupation, but one that has a learning curve!  We’ve created the a list of 5 things you should remember when buying your first investment property.

Location:  This is the foundation for this business.  Know your areas, do your research on the location you are considering to purchase within.  Google searches, economic reports help – but a real estate agent that markets within the area you are considering can be a valuable asset for you.  They know the sales, they know deals and they know what’s working and what’s not working in different areas.  Always keep in mind transportation flow or accessibility, nearby amenities and schools.

Legal Knowledge:  Be sure you know stuff, not only the purchase of your first investment property, but what happens when you rent out this property?  Are you familiar with the laws pertaining to being a landlord?  Read up or ask a property management agent for help in this area.  You don’t want to get involved with a tenant issue unprepared.

Insurance:  Research why types of insurance you’ll need as a landlord.  Get quotes and learn as much as you can from your insurance agent.  You don’t want to find yourself caught without the proper insurance on  your new investment.

Maintenance:  Have a way to keep your investment property maintained.  You’ll need to check local health and safety laws for landlords to make sure you are up to date and not liable for any negligence claims on the property.

Finding Tenants:  The easiest part of this task is to outsource this to a property management firm.  They’ll find the tenants, take care of the lease agreements, condition reports and bond lodgment.  Some companies offer direct payment or the ability to pay electronically which will help you keep on track with your finances.  Property Management companies will also supply you with an overview of expenses and income.  They’ll also suggest repairs, concerns and keep you notified of anything that may be of a concern to you.

We hope these initial 5 tips for buying your first investment property help you.  We’re here to answer any questions you might have and of course, we’d love to help you with your property management needs!

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Atwell & Co Real Estate
Unit 6 / 29-30 Grattan Street Prahran, Victoria 3181
Phone: (03) 9510 6203 URL of Map