Knowledge is the key to making smart decisions.
You’ve heard when Investing in Real Estate the old Adage Location, Location, Location. While it may be logical that location is the number one factor when it comes to investing in real estate, not everyone realizes that the physical location is only a small part of it.. To truly know whether you’ve selected the best area you also need to confirm the city has job growth, population growth, and that it is undervalued enough to sustain future growth and cash flow.If you can check all those boxes, you’re well on your way to making a wise choice. However, before finalizing any property investment deal, you’d do well to check a few more location items off the list.
First, ask yourself: Does the area provide for low taxes and insurance? Real estate investment should benefit your bank account, not hinder it. For this reason, it’s important to discover what expenses you will incur from your purchase. It’s not a good deal if your return keeps sinking into your expense account.
You also don’t want to get sunk by a lack of tenants. So, consider: Where is the city’s path of progress? By this we mean, in which direction is the city growing? If a new multi-billion dollar research centre has just opened in the eastern part of town, that is where all the new jobs will be, and likely additional commercial growth. Renters will be drawn to this, so follow your prospective tenants.
Then determine your property workability score. Do you know your investment’s workability score? In other words, do you know what would attract a person to live here? What’s close by? Schools? Work? Entertainment? To get the capital gain you want, and to know you have a solid way out, be sure to buy property that is workable.
Workable homes are also sound homes. Ask yourself: Are you confident this property will provide positive cash flow? What is it about the house itself, its structure and condition, which makes you believe it’s a winner? If you want to achieve a regular, positive return, your property investment needs to be in good condition. Fortunately, all the homes Estero Property sell come with a registered pre-inspection report from a reputable market provider; an easy check off of your list.
The final question to consider is: Do you have access to great property management? Return on investment can be made or broken by your property manger so in this case, second best will not do. Think very carefully about who you employ. Should you favour Memphis or Charlotte, Estero can provide assistance in this area as well.
In fact, here at Estero we are happy to guide you with the whole property investment process if you’d like. Contact us today to learn more.