Posted by on

What to Consider Before Buying an Investment Property ….

Written by Laura Wise.  The housing market is rebounding and interest rates are still low, meaning an investment property might make a lot of sense for you. Before you move forward with purchasing an investment property, take note of these considerations.

Rental Property
Are you investing for the rental income or speculating on the rate of inflation. Always analyze the cap rates, or income vs expense, or a quick reference is income divided by the value, if it is not at least 7% (much better than any saving institution pays on a savings account) keep looking.

I can help …..

I own rentals. I manage rental properties for my clients out of town. I will find you one that makes sense.

Time Shares
Not my first choice in investment, they are not usually thought of as an investment, re-sale can be difficult, you can lose money if you are buying with resale inflation in mind.  However, they are a great money saver for those yearly vacations. Especially if you buy second hand, similar to a foreclosure. 

Real Estate Development
Development deals come with a high price tag and a lot of risk. While the return can also be high, for the average investor, the risk doesn’t outweigh the potential reward.

Foreign Real Estate
Before buying property in another country, make sure you are aware of the differences in their real estate laws and protections. Also take into consideration the country’s economic and political stability.

Associated Costs
If you purchase an investment property, the mortgage will not be your only expense. Remember necessary insurance, differences in tax treatment of investment property vs. primary residence, upkeep and — if you plan to visit your property — travel costs.  So talk to your accountant.

Once you’ve thought through the considerations above, an investment property may still be a good financial move for you. Interest rates are low, and while home prices are rising, they are still relatively low, call me I will help you find, and analyze the return.

I look forward to talking with you.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

What Our Customers Are Saying

Very pleased. Joel was professional and honest. When asked, he gave his opinion, but did not try to over sell. He was very responsive, but also was respectful of our space. Our relationship seemed genuine and he gave us great personal attention. H...

Ferrin Affleck

Paige Marsh was the best real estate agent I have ever worked with and I have worked with at least 15 agents in the past 20 years on residential or commercial sales or leases. I work in Sales for a landscape company and I understand what it takes ...

Rob Archer

Paige was always calm, listened to our interests and concerns, and gave careful attention to details. She acted quickly when time was an issue and didn't become frustrated with us when we changed our mind after making an offer. Paige worked with u...

R & R Fawson

For several months,my husband and I were struggling in trying to find a home that would fit our needs. We started working with Paige from The Bird Team and within 1 week Paige found us the perfect home that suited our needs. She was very knowledge...

Lance & Brenda

My wife and I had a great experience working with Paige! She was ALWAYS available to answer our many questions, often at very early or late hours. On the rare occasion she didn't have an answer, she would find us the answer within minutes! She is ...

Steve & Micki

Joel is an honest and straight forward agent. Takes the stress out of all transactions, understands the market, a true asset to buyers and sellers alike. Have bought and sold with Joel and will suggest to all of my collegues and friends.

Jason Killebrew

Joel was very professional during the whole process. I appreciated his quick responses to my calls and texts. I felt he was really helpful without being pushy. He took the time to listen to my concerns and answer my questions. I would definitely r...

Aeme Skelton

Scott provided me with a lead on an investment property that turned out to be just what I was looking for. I quickly cleaned it up a little and he put it on the market to flip it. Within a month I had multiple offers and was able to close with a v...

Tom Comstock

Scott's knowledge of market conditions and realities of the market was a big help in deciding whether the offer was reasonable and should be considered. Scott was very even handed in dealing with the issues of the sale and dealing with the facts n...

Joe

Scott is the best realtor in the area he helped me out of several problems with my loan and several other things involved with my purchase. I'm in California it was hard for me to expedite the things that I needed to in Utah and Scott and his tea...

Kevin

Read More Testimonials »