Should I buy or rent a residential property investment? Chances are you’ve come across this question a number of times and chances are you’ve found it particularly hard to answer.
It’s no surprise that the question proves difficult. After all, we all have our reasons and we have unique circumstances and preferences. However, we should still dwell in the facts and spend adequate time weighing between the alternatives to better understand which of the two proves to be more beneficial.
To help us do that, we’ve compiled a list of benefits that go with each option. Here, take a look.
You build equity as time passes by. – In other words, each payment towards the purchase of the property adds up to one’s assets. We love equity because it represents ownership.
You end up owning the property. – Once full payment is completed, the title transfers to your name. It becomes your asset and therefore something you own.
You can do whatever you want with it. – In terms of renovations, improvements or upgrades, there will be no mandates or rules to live by. This means full creative freedom. You can even sell it or lease it out too whenever you deem necessary. That constitutes to another benefit which is income.
You enjoy tax deductions. – Some expense items may be considered tax deductible thus lowering an owner’s total income payable at the end of the year. Plus, other benefits like federal tax deductions and homestead exemption may be availed where applicable.
You don’t have to spend huge upfront. – Buying is very costly and requires a significant sum. That’s not very appropriate and practical for others that is why renting becomes more favorable as it will require significantly less upfront.
You spend less on repair and maintenance. – Depending on the lease contract, the costs and responsibilities involving asset upkeep shall be born mostly by the landlord.
You don’t suffer from market fluctuations. – When something goes amiss in the real estate market and home prices drop, you don’t suffer a huge loss. Rather, there’s even a chance that rental prices lower to encourage more tenants and to signify the current market value of the house.
You can move in and out easily. – When leasing a residential property investment, there’s no fear that a huge chunk of one’s cash is locked within the asset making it easier to move if the situation calls for it.
When one puts their hard earned money on a residential property investment, one wishes to get a return. This is regardless if you want to sell or lease the property or use it for yourself. To do that, you will want your asset to appreciate instead of depreciate. The latter is common and it happens to most assets. Once that has used up the value of your property, it is now deemed worthless and selling it should you need to will not provide a profit any longer. It can either come up with a salvage value or none at all. So how do you avoid this? How can you increase the value of your investment instead? Take a look at the following list and find out.
Keep it in shape.
This means that proper maintenance must be present. Make the necessary repairs as needed. Do not skimp on your regular inspections and maintenance procedures. Remember that the longer you leave damage unattended, the worse it tends to become. Also, prevention is always better than cure. Ongoing costs are part of any property investment and you should do well to provide for them.
Upgrade where needed.
Adding to the property’s value will also have to deal with the upgrades that you do for it. This includes rewiring of old electrical units, repainting walls, changing up dated fixtures, adding plants on the front porch and back lawn and even to the smallest details such as cleaning up the attic and garage. Small or huge, upgrades can turn into a cost that can be capitalized and thus add value to the property.
Be wary of location.
Before buying the residential property investment, take into consideration its location. Add into that the other nearby and adjacent properties, structures and establishments to it. All of these will have a bearing on the value of the asset over time. For example, areas such as huge and thriving cities (e.g. London, Sydney, New York, etc) tend to rise than fall. This is because the demand for assets in such location grows but land as we all know does not multiply. In economics, this creates an upward surge in value. The same holds true for those that are near commercial hubs, roads and highways, educational institutions, shopping centers, parks and hospitals.
If you want your residential property investment to appreciate, keep these three in mind and be sure to apply them aptly. For more property advice visit this page singerviellesales.com
In today’s day and age, you’d rarely see people with a single job. Sometimes one cannot suffice especially when you are supporting a family. You’d be surprised to know that there are some people who have three jobs at a time and jump from one shift to the other. It’s pretty tiring and that’s a lot of hard work but it is something that has to be done. After all, we need to live and to do that we need a means to be able to buy our basic necessities. But what if your time does not permit you to take on a part time gig? Or what if you want more time for yourself and your family instead of getting stuck in the office? The answer is through investing your money in real estate assets. To help you do that we have come up with a guideline to winning in investment property in UK.
Learn about the trade. – Just like any other profession, investing in properties and making profits with them is a career on its own. You can even consider it as business. This makes it important for you to learn about it. You can enroll in a crash course, attend seminars or even read on relevant materials to improve your knowledge and skills.
Brush up on your locality’s market. – Where do you want to invest in? When you’ve chosen a place or a number of them from where to get your assets, it makes it a must for you to learn about the locality, its characteristics, features as well as pros and cons. All that and more will affect the pricing and demand for your properties.
Get to know the types of properties available. – Different types are priced differently and will cater to varying customers and clients. You need to know how to strike a deal out of each one.
Always have your finances in check. – Investments in UK properties will require finances. Remember that this type of business although may be able to provide you with huge and promising returns will need a large capital. Keep up with your expenses and make a budget.
Grow your portfolio. – Over time you will add up properties in your portfolio. Make it as promising and sterling as could be. If you need help then call on the expertise of professionals for it.
Know your client base. – Lastly, winning in investment property in UK requires investors to know their client base. You need to know who would want to lease or buy your assets. This way you can best target your marketing efforts to them.