5 Untold Steps for Buying an Investment Property

Taking the first step towards your investment real estate goals can be daunting and thrilling. Just like anything new, you need to follow a learning curve. Conducting some research and having steps to follow will lead you to the rewarding results of investing in real estate.

To ensure that you don’t mess up, when buying an investment property, follow these 5 steps:

1. Set Investment Goals

Why do you want to buy an investment property? The answer to this question should guide you in setting investment goals. Consider the outcomes of your current move three or five years to come. Additionally, decide on the number of properties to invest in. You can talk to your financial adviser, read online materials or books. You can also consult real estate experts to guide you. But, regardless of the resources that you use for guidance, have an action list with dates that indicate when you will take every step.

2. Talk to a Real Estate Agent

There are many investment properties to choose from. However, not every property is ideal for you. And this is where a real estate agent comes in. A good agent is a professional with experience and knowledge of the industry patterns. The agent knows the current values of different properties in the market. They can also provide projections of the available properties. Additionally, a good agent knows about properties even before they are featured in the market. Thus, they are best suited to help you find the right investment property to buy. Nevertheless, hire a genuine and licensed real estate agent to ensure your protection.

3. Find a Suitable Property

With the help of a real estate agent, find an ideal investment property to purchase. You can choose a commercial, residential, or holiday rental property. However, take time to investigate the property to ensure that it is the best for you.
Some of the things that you should consider about the investment property that you choose include:

• Location: – Is the investment property located at a place where it will experience rapid price growth or is it well-tenanted?
• Infrastructure: – Consider the presence of things like roads, cafes, shops, and schools.
• Demographics: – Who is likely to be interested in the property?
• Development: – Is there a proposed or upcoming development in the area which may improve the current infrastructure and increase price growth or tenancy rates.
• Condition: – What is the condition of the property’s amenities? Do they need immediate repair or how long will it take before the property requires repairs?

4. Get a Loan

Getting an investment real estate loan is a process with several steps to follow. When you know these steps, you save time and get the financing required to purchase an investment property.
Here are the steps to follow when getting a loan to buy an investment property:

• Know the loan amount you are eligible
• Calculate loan and property buying costs
• Investigate loan interests and payment options
• Get loan pre-approval and eventual approval

A mortgage advisor can help you when applying for a property investment loan.

5. Buy the Investment Property

View the sale contract carefully and check inclusions and conditions. Also make sure that the property is thoroughly inspected for things like patent or latent defects. The offer signing can be done with the real estate agent and documents signing can take place at an attorney’s office.
Investment properties provide a great way to create wealth. Follow these steps to ensure a seamless purchase process.

Originally published at InvestmentRealEstate.biz