7 Ways To Become a Profitable Property Owner
If you make smart and informed decisions when investing in property,
you can develop a very lucrative business. Based on my many years of
real estate experience, I’ve put together some tips to help you build
a property empire.
1. Choose condos over houses
As a property investor, you may have heard this before. Smaller properties,
such as condos or flats, tend to generate a higher return than houses. If
you have enough room in your budget, buying a 2 bedroom, 2 bathroom condo
can prove to be advantageous. This type of property appeals to a larger range
of tenants, improving the chances of higher occupancy rates.
2. Be patient before buying
Investing in real estate is a long term investment. As such,
it’s important to be patient before committing to the purchase
of a property. It’s wise to weigh the pros and cons of each
property that you are considering. Remember, making money from
your investment properties can take time. So, prepare yourself
for the long haul. And don’t overextend yourself financially.
3. Add value to your property
Renting your property becomes a whole lot easier with an upgraded home.
Making renovations and improvements to the bathroom and kitchen, for
instance, can equal higher rents. Moreover, adding value to your property
is one of the easiest ways to improve your return when you’re ready to sell.
4. Learn about the tax advantages
Consult with a tax advisor or CPA when you purchase a rental property. They
can explain the various ways to minimize the tax you pay on rental income.
Also, there are certain tax advantages an experienced professional can teach
5. Diversify your investments
As with any investment, some of the best advice you can get is to diversity your
investment portfolio. Diversification helps to spread the risk across investments.
In the case of buying real estate, a smart strategy includes buying different types
of properties in different areas.
6. Buy local real estate
Being an expert in a particular city is a helpful advantage. If you’ve lived
somewhere for a while and have already purchased property in that area, you’ve likely
become an expert. Thus, you’ll know if the location and price of a property is a good
buy or not. A bargain can be spotted easier when it’s in your local area. Additionally,
owning a rental close to home makes it easier to assist your tenants and keep an eye
on the property.
7. Build a dependable and trustworthy professional network
A property owner cannot be truly successful without the help of other professionals.
Finding a good lawyer, accountant, repair man, and in some cases a property management company,
is vital to your success. When you find these partners, you’ll have the support needed to grow
your business and make it profitable.