What Type of Property Should I Invest In?

by Mike on September 17, 2016

What Type of Property Should I Invest In?

When you decide to invest in property, in requires you to consider a lot of things. One of the first things you should do is determine what type of property you want to look into. An apartment? A house? A mansion? A plot of land?

Whatever you’re considering, here are the things you need to factor into your decision.
 
Is the area more important?
 

The type of property you want to invest in is very important. But a lot of people put all their focus on that when there are a lot of other factors to consider. Think about the area in which the property is based, for example. This could actually be a lot more important than the type of property. Many people will making their purchasing decisions based on such information.

There are places in this country where expensive housing has been built in less developed areas. The new, modern homes may look great inside and out. But they’re in neighborhoods that a lot of people who can afford that price range don’t really want to move to. There’s a lot to be said on this matter; snobbery, gentrification, economic imbalance and so on. For now, I’m just going to point out the problem for you in terms of your the personal gain you stand to make.
 
The resultant workload
 
Some properties are going to require a lot more work than others. This can seem like quite an obvious statement. But some people don’t consider it that much. They forget that when they rent out a property that they’re going to become landlords.

The size and type of the property is going to determine how much work you’ll have to do going forward. So this is definitely something you should consider. A mansion might bring you higher gains than an apartment in New York City. But can you deal with being a landlord for a mansion? Of course, if you deal with a property management agency like Froerer, then you don’t have to worry so much about this factor.
 
Remembering your future
 
Of course, a lot of people look into buy-to-rent with the intention of living in the property at some point in the future! Maybe you’re considering getting a retirement home in your desired area while the prices are still affordable. You may be quite a way away from retiring, but you can always rent out the property in the meantime. In this case, you’ll need to think a lot less about the benefits for the tenants when looking for a place. If you plan to live in it at some point, you have to put your own desires first.

A lot of great retirement properties might not necessarily meet the needs of potential tenants. Of course, it’s tough to say that certain houses appeal to older people more than they do to younger people. But you shouldn’t be too willing to put the wants of potential tenants first. This is your future. Ultimately, it could to affect your life more than theirs. But remember that if you absolutely need to rent it out in the meantime, you might have to work on some renovations.

 

***Image thanks to Mark Moz***

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