When purchasing an investment property, you first need to determine how much you want to spend and which locations meet your budget. You may prefer to buy in the same area as where you currently live but with property prices rising it may not be possible.
Don’t let a lack of funds put you off investing. If the area where you are is expensive you may want to consider cheaper options, such as another suburb, city or state. If you are working in the city, it may be worth it to rent close to work and buy out-of-town – just to get on the property ladder. Either way, it is important to do your research and make an informed decision.
Do your research in the local market
Regardless where you are buying your investment property, you need to know the local market well. Take time to speak to real estate agents locally and try to get as much information about the area as possible. While you can do the bulk of your research online and by phone, you must also go and visit the area where you want to buy and look around. You will get a better feeling for the place and see if it is somewhere you actually want to buy.
Hire a property manager
Once you have made a decision on the location you want to buy in, it’s time to call in the big guns. Local property managers will help you to find out which suburbs appeal to both you and the local tenant. They will also know the type of tenants you will expect to find in the area you are looking. It is crucial to build a network of professionals to help you and a property manager will be your first point of contact. Once you have a property manager, they will oversee everything and can recommend what you need to make your investment profitable.
If you have been putting off investing in property because you can’t afford to buy where you live, there are other options. Consider buying in another city or state and then have a property manager manage it for you.