Buying property is kind of a big deal. It’s not something most of us enter into lightly. Investing in real estate means a time and financial commitment, regardless of your particular investment strategy. As a result, we put a lot of thought into the properties we buy. Like deciding to get married, we do a bit of soul searching before we jump in…is the property in agreement with your long-term plans? Is it a good fit for you? Does it get along with the other properties in your investment portfolio? Here are 3 things to consider before saying ‘I Do’ (to your property)!
Consider Your Future Together
Location, location, location. The location of your property is a biggie; it gives you a glimpse of what your future may hold. Is the city where your property is located sustainable? What does the job market look like? Who would you be renting to? Are there more renters than homeowners? Are there any nearby local colleges full of potential renters? Does it attract winter vacationers? Be sure you have a clear idea of your property’s future potential before you buy.
Consider Your Personal Investing Style
Just because you find a good-looking property with great financials doesn’t mean you should rush off to the closing. If you’re more of a laid-back and hands-off investor, a fixer-upper probably isn’t going to do it for you. If you’re the type of investor who likes every “I” dotted and all your “T’s” crossed, you may want to look for a property that comes with a warranty or guarantee of some kind. Be sure that the property you buy is in line with your personal investing style.
Consider Your Options
There’s plenty of fish in the sea. Don’t confine yourself to buying properties in your own backyard, or even your own country. Follow your bliss; go where the profits are. Buying a property in another state or country doesn’t mean you’ll have to relocate, by any means. Property management companies and the internet make life easy for long-distance investors. Be sure that you’re not limiting yourself before you take the plunge.
The key takeaway? Don’t rush right in. Consider your future, your personal style and other properties before you say ‘I Do’. Date a few different properties to find the one that works best for you and your lifestyle. Get outside advice. Network with other investors. Don’t get into a real estate relationship that isn’t sustainable. Before you sign the papers, be sure it’s the right buy for you.