3 Tips to Buy a Perfect Rental Property

Money exists to generate more money. It’s that simple, and it only makes sense when you look at it. What use is there from all that extra cash when it’s laying around, doing nothing? With that in mind, there is a whole myriad of investment options to pick and choose from. Any person can easily get lost in the choices, especially when the wrong one can be an expensive mistake. Real estate provides assurance when it comes to investments. Minimising risk and maximising profits are the two staples of the industry. Knowing that all that remains is to pick the right real estate to invest your money into. That can be easy as one, two, or three, so let’s get started!

1. Location, location, location

If you haven’t already noticed from the title, where you buy is just as important as what you buy. When buying a house that you intend to rent, always start with yourself as the basis. Would you buy a home in a dodgy neighbourhood, isolated from schools, parks, stores and so on? Well, neither will other people, for that matter. Finding a rental property that ticks all of the boxes is near impossible, and they tend to get pretty expensive. 

So, adjust your expectations accordingly. If you want to rent/sell houses to families, schools, parks, and grocery stores need to be close. Young and single want to be in the action, with clubs, events and stadiums nearby. Downtown or in the suburbs, picture your ideal customer profile and then make the right decision.

2. Ask the pros

There is no shame in reaching out for help. Getting a head start with online material is an ok first step, one that you are making at this moment. Doing your homework and laying the groundwork for your future investment starts with that first article. One, or two per day, while you are drinking your morning coffee, makes all the difference. Then you can reach out to professional and reliable real estate Whitsundays and other similar companies. 

Why break new ground, re-invent the wheel and do other similar actions when there are people to do that for you? Yes, you can view hiring such companies as an expense, but think of the alternative. Losing all of that hard-earned money because you miscalculated or misjudged a single item is costlier than having someone to guide and help you along. Minimizing risk and maximizing profits, we again want to emphasise this moto.

3. Set realistic expectations

Buying is half the battle; the other half is getting your money back and profit. The easiest thing in the world is to set a sky-high rent, but that gets you nowhere. Without the need for a PhD here, you need to apply the 1% rule. This means if you bought real estate at 100.000$, for example, and did some renovating and maintenance for 10.000$ that’s 110.000$ total. The rent should then be 1100$. 

Setting it like that gets you your money back in about eight years, which may seem long but is considered medium time in the real estate business. Considering that everything after that is pure profit, it’s well worth sitting back and watching a passive steady monetary inflow. One more thing with setting realistic expectations is that you avoid getting disappointed or frustrated, as your goals match reality.

Starting a new journey always seems difficult in the beginning. With tons of new info, obstacles and threats to deal with, many people get discouraged before they even start. That is precisely why making the first step is paramount for success. After all, making any changes is better than none. In no time at all, you will be able to see the fruits of your labour, manifest before your very eyes. We wish you all the best in your future endeavours.