Many people are ready to purchase their first investment property and are looking for land for sale both online and through advertisements. So, what is an investment property? Well, it’s a home that you buy with the intention of generating income from renting it out, since homes and apartments for sale or rent in Sri Lanka have great potential to earn you a steady income over the years. You can also increase your profit by renovating or flipping the house for resale at a higher price. It’s important to understand how much money you have available in order to make this type of investment and what should be considered before buying an investment property.
Here are some tips on how to buy a good investment property:
a) Be sure that you have enough credit score.
b) Spend time researching neighbourhoods.
c) Make sure there has been no crime in the area recently.
Buying an investment property is a great way to increase your net worth
Real estate in your portfolio can provide a great return on your investment. An investment property can increase the size of your portfolio by increasing its value over time which will provide a good rate of return when eventually sold off again with profits from rent payments being used for re-investment opportunities. In addition, there are several considerations that need to be made before investing in an asset such as location, so it may not necessarily be right for everyone at all times but if you have done your research beforehand then it could prove worthwhile financially down the line.
There are many considerations when buying an investment property, including the following
When looking to invest in real estate there are several considerations that need to be made before you make any decisions.
The following are some of the considerations that should be taken into account:
– Location – The location of the property is very important and will be the first thing you should think about when buying an investment property. You need to consider how close it is to public transport, schools and amenities such as shopping centres or supermarkets.
– Zoning – Find out whether your chosen area has future development plans for projects such as new buildings which could affect the price of properties in that location over time.
– Size – Decide what size property would suit you best before making a purchase. It is worth noting that smaller sized properties may not generate much profit but they are often easier to manage than larger ones so this all depends on what sort of lifestyle you lead and where you want to live etc.
– Price – The price of the property is also a very important factor to consider because the lower the purchase price, generally speaking, then this will allow you more scope when it comes to renovations and other potential profits down the line.
– Renovations – If applicable you should also think about what sort of renovations or changes can be made that could increase your investment opportunity. For example, if there is an outdoor space such as a garden which cannot be used currently due to its state but with some effort and money spent on landscaping could become valuable real estate in future.
– Type of property (such as apartment or house) – What type of property will you be buying? Are you interested in a house with property around it, or an apartment?
– Financing options available – What are the financing options available for your purchase? Do you have any special conditions or preferences when it comes to the loans required for buying an investment property, e.g. will you be able to afford repayments on a loan, do you want interest only payments etc.
– Future capital gains on rental income when selling it in the long-term – What kind of return can you get on the property by renting it out or even selling it in the future.
Buying a new construction house that has not been built yet
If you are thinking of buying a property that has not been built yet, then you will need to make sure that the builder is reputable. You should read online reviews to see what other people have said about them or talk with your real estate agent for recommendations on reliable builders in the area.
When buying a new construction, make sure about the following:
– Make sure you are happy with any structural changes before signing off. If there are any major structural changes, make sure they are agreed upon by both parties. This means getting it written into contract so there aren’t any issues later when moving in. It can be quite stressful if something needs to change after months of build when it is already been built and paid for. If possible, get a letter from council stating all building requirements have been met otherwise this will need to be done after move in which may mean more costs and delays.
– Check out what appliances and fixtures are included in the price. If appliances are included it’s always nice to have them brand new, however these can be really expensive so check if anything is second hand.
– Find out what kind of flooring comes with the unit or how much allowance is given for you to make changes to it.
Buying an investment property is a great way to make your money grow, but it’s not the only option. If you do your research well, then you will set to have a nice steady income coming in from rent.