Donald Trump, now a political figure, has been known for years as a real estate mogul with multi-million dollar real estate deals flowing through the Trump family business. Donald Trump has always stressed that everyone should own and invest in real estate as much as they can, as this was how he built up his own empire of wealth. But real estate investment isn't only for the rich and famous, nowadays many are joining in on the monetary gains of property investment. Although what knowledge should you have and what should you consider before investing in property?
Many people are very interested in property investment in recent years, as it can yield rather profitable in helping to pay down mortgages on your property or return as profitable from rental payments from tenants. There are a few different avenues one may take when starting out in property investment. First, you must consider what housing type you are looking to invest in, whether is be a family home or a condominium, or whether you will be looking to do a short-term investment. Before you decide which type of property to invest in, you may want to consider the pros and cons of all options. Condominiums are very popular for property investment as they have many benefits, especially for someone new to the property investment business. Condos tend to have much less maintenance involved, as they are maintained by the condo corporation, hence the monthly condo fees. Typically a condo in a good location with amenities such as shops and restaurants will appreciate in value over time. Also, the rental market is good right now, meaning it will be easier to find a tenant and give you the option to screen the applicants to find the perfect tenant for you. There are many new condominium builds currently, as well as existing condo buildings in the Barrie area.
If a condo is not something you are interested in, then perhaps a house with a rental income potential would be a better option. This option comes with its own set of benefits and potential issues. A home with a rental in the basement or vice versa can help drastically in reducing mortgage payments each month with supplementation of rental payments. Also, you can then live in your home while renting and can keep the tenants for one year or for long-term occupancy. However, you then must be aware of the responsibilities as a landlord, which can include obtaining rent payments, maintenance, unexpected repairs, etc. If choosing this option, you may want to be more particular with the tenants you choose, as you will be living in close proximity to one another. When selling a home with a legal rental unit, you tend to get a better return on the sale, as homes with rental potentials are rather popular these days. When looking into an investment property, new construction or new build may be important to consider. New construction homes tend to appreciate in value and may be useful if you are looking for a long-term investment with less initial renovation work. On the other hand, house flipping is a good idea if you are looking for short-term investment property and are looking to make a monetary gain in a shorter period of time. Though be aware that house flipping can be risky and maybe more expensive in the immediate than long-term property investment.
Once you have considered your options regarding which type of property you are looking to invest in, you should then consider some other key questions. Location is very important, try to pay attention to what amenities are nearby, such as restaurants, shopping, trails, proximity to highway access, etc. Also consider neighborhoods, the age of the surrounding neighborhood, is it family-oriented or is the average age more elderly? What type of tenant are you looking for? And of course one of the biggest questions is how much money are you looking to gain from an investment property and at which speed? Make sure you get a home inspection done, and have a fund set aside to help with any unforeseen costs.
Property investment is a great idea from young first-time investors to more experienced investors. Again and again, property investment has proved to be valuable and monetarily beneficial, as long as you have the appropriate knowledge before you jump in. What type of property investment would you choose?