Top 5 Property Investment Management Tips for 2016
There’s an age old saying “spend money to make money” and in our decade old experience, we can swear by it. While it is important to spend funds wisely, but to invest efficiently and avoid costly mistakes down the road, we bring to you Top 5 Property Investment Management Tips for 2016
Know the market dynamics, where you are investing
One of the most important decisions that you will ever make is that of investing in real estate, solely because of the capital growth that an investment of this nature offers. Besides the price at which you are acquiring a property, it is critical to also understand other dynamics that come into play like the area. It is wise to do as much research as possible, for example speak to locals, shopkeepers and know how the area is, what are the developmental plans, which part of the area is better than the other? A good trick to get inside information is to speak to competing agents about similar properties in the same location. While these are good methods, it is also advisable to seek professional services in these matter and also do independent research about property values, rents etc. which are easily available across so many portals now.
Understand the condition of the property and the facilities available
When making a decision to acquire a property, it is advisable to do a thorough check of the prospect property and look for defects like damaged wall, woodwork, cabling and leaking pipes etc. Identifying these will make a significant impact to the profits or put a dent in the cash flow.
It is also not prudent to buy a property which is in a perfect condition, because that would mean higher cash outflow. While you can get a higher value from a property in not so good condition by sprucing it up a bit, which will increase the capital growth as well as command a higher rental.
Make the property attractive
We all like good things around us. So if you are planning to put your investment property on rent, and then the suggestion would be to keep the property in good condition. One thing that attracts good tenants is well kept properties. It is advisable to remember that when the time arises to sell, then the decisions are also usually made basis if the property was owner occupied vs tenant occupied, because buying property is an emotional purchase than a logical one.
Manage risks from a long term perspective
Unlike traditional methods of investing like shares, gold etc., investment in property is usually a long term investment. One should not invest for the sake of instant profits. The longer one can hold on to a property, the better it is. The idea is to strike a balance between financial stability and enjoying a good life and not become stagnant.
A key thing to remember is that you cannot sell your investment property instantaneously if the need arises. The market works on the dynamics of supply and demand and it may take months to sell a property, so you should be mentally and financially prepared.
Hire a professional Property Investment Management firm
Times have changed. We have come a long way from relying on the services of a local property dealer to hiring professional services. A managed services firm comes with unmatched years of experience working with different markets and types of properties. They are the ears and eyes of the market and help making logical decisions based on market reports, analytics and get the best value for your property. A property management firm can also take care of maintenance issues, finding the right tenant with checks, besides having expertise about legal issues in case a need arises.
“MyFollo” is an online real estate ecosystem bringing in change in the way online advisory and transactions are executed. Write to us at email@example.com to know how we can help you.