Have you been thinking about property investment as a means to an end? By means to an end I am referring to the silver lining of retirement on the horizon. We all want to retire today so that we can use our time as we see fit, and not the daily 9 to 5 grind that we have all grown so accustomed to today. In fact, I have many friends and online acquaintances that have used property investment as a means to financial freedom and independence. While I am still working on this goal myself, I’d like to share some of their top tips at how to be successful when investing in property and real estate.
Finding a reliable low cost mortgage company is important in order to keep upfront costs reasonable. Chances are you will be financing the purchase price of these properties and not paying cash outright. For example, Newcastle permanent home loans have reasonable loan fees and fair interest rates. Perhaps you can even bargain with certain costs like reduced appraisal fees if you end up ordering several different loans through the same company.
Be aware of property taxes and school districts. These are two important factors that play into most potential renters and buyers minds when deciding on where to live. Property taxes can be quite expensive depending on what location you live in, and often are a deal breaker when factoring in the cost of a home on one’s budget. Also, parents are naturally concerned with the school district for their children’s sake. You might see a larger and new home for much less money in a poor school district, but turning that house over could take a lot longer.
Unless you have plenty of free time and consider yourself Mr. Fix-It, I would hire a property management company to do all of the heavy lifting. They will collect rent money from borrowers and hound the renter until it is paid. If a furnace goes out or a roof is leaking they will find a reliable low cost contractor to come out and do the work for you. They often times take one month of the rental income as their fee, which isn’t all that much considering the hassle they save you from.
If you think that real estate investment is key to early retirement for you then make sure you do your homework before getting started. Heed the tips and advice above, and happy hunting!
