Thursday, March 27, 2014

Top tips for buy-to-let investors

One way of investing in real estate involves buying property to rent out. However, not every property can turn in profits. As a real estate investor, there are several things you must consider before choosing a property to rent out. Get tips...

The location of the property will give you a glimpse of possible future tenants.

Location

As with any real estate property purchase, location is a top factor to consider. The location of the property will give you a glimpse of possible future tenants.

Properties that are located near a business district, school or university make for an attractive rental for families and young professionals alike. Choose a clean and safe neighborhood as this is appealing to every renter. With floods and heavy traffic reigning rampant in Metro Manila, it’s also prudent to consider these factors when deciding on a location. 

Developments

Future developments in the area may affect the property’s potential as a rental. Watch out for new condominium buildings being constructed, as these may offer newer and better rental alternatives to the property you’re buying. On the other hand, commercial developments, public roads and transportation are great additions that will make the property more desirable. It’s important to find out everything you can about future plans in the property’s surrounding location, as this will give you a better handle on the property’s profitability. 

Rents

Check out current rentals in the area to find out what the running rentals are. Compare this against your projected expenses as a landlord. This may include mortgage payments, property taxes, home repairs and routine maintenance. If the average rental income is unable to cover these basic expenses, the property may not be a worthwhile investment.

If the location has a lot of vacant rental properties, this may also be a bad sign. Do the math and be conservative in your estimates before you buy property.


Previous Next

Share
Email

Top Articles

Small spaces: Decor t...
Need a little more leg space in your living room? Use scaled-down sofas, arrang...
Home decor: Tips to c...
Even if you’re on a tight budget, it’s possible to completely transform a room ...
Buying Lots in Valenz...
Our partner is buying several properties in areas in Valenzuela, Quezon City, B...
Tips for designing th...
With imagination and clever design, you can encourage your family to spend more...
Buying Lots in QC, Va...
Our partner is buying several properties in Quezon City, as well as the cities ...
More property news...