Published on November 10th, 2014 | by neil0
Investing in Property: What Should You Be Asking Yourself
If you’re looking for a way to invest your money then property could well be it. It isn’t just about buying your own home, but a second home could be the way forward. If you invest in a second property then you can rent this out to cover any mortgage costs that may be payable too.
As someone who has never invested money in this way before it can be a daunting process. Buying a home is always a big deal, more so when you are doing it to rent out. The good news is that there are ways to get help and support the whole process, so you don’t have to struggle too much.
A Look At Mortgage Rates
Before you buy any property you need to look at mortgage rates and whether you can afford repayments. A lot of the time you are probably planning for your tenants to cover the cost of your rent, which is fine. However, you do need to make sure that you could cover the cost of your mortgage if that was needed.
Make sure you shop around and look at different mortgage rates offered by different mortgage brokers. Most of these will be able to give you price plans and terms, so comparing between them shouldn’t be too much of a chore.
Is Your Investment Worthwhile?
Rather than get carried away with just buying a second property, you need to make sure that you are buying the right type or property. Use the internet to do a little research into the local rental market and what type of properties are being snatched up. This should give you a firm idea on a sensible property type to invest your money in and what sort of return you should expect.
What is also important is that you consider your long term goals as well. More than likely your plan is to sell the property later down the line. This is fine but you should make sure that it is going to be sellable before you invest. This shouldn’t be a problem, but it is something to bear in mind when you do start to look into your investment property options.
How Am I Going to Rent?
Whether you have a detached home with 5 bedrooms or a houseboat with one bedroom, you need to consider how you are going to bring tenants in. The type of property you’re buying will have an effect on this, but you should be able to get help.
Generally speaking getting an estate agent on board is the best way forward. Not only will they have contacts for a number of potential tenants but they can help you with the whole process.
From vetting potential tenants to collecting rent and dealing with problems the right firm of estate agents should be able to get care of it all. That way you get the benefit of renting out a second property without any of the hassle.