Are you thinking about buying a property to use as rental income? If so, plenty of research and planning is needed, as purchasing a rental home is much different than buying a house to live in yourself. Here are a few pointers:
The loan application. If you have to apply for a loan to buy your investment property, it is best to do so before you start your property search. That way, you will know what you can afford and won’t waste your time looking at places beyond your budget. You will also need to ensure you can make the loan repayments, in case you are unable to find a suitable tenant at first.
When deciding on which property to buy, always have your prospective tenants in mind. What do they need from a rental? Do not base your decisions on your personal preferences.
The location of the property is another major factor when it comes to making a wise investment. Search areas that are in constant, steady need of rental properties, as this will help to ensure that your property is continuously occupied.
Don’t rush into it. As long as you have a home to live in yourself, there is no need to make a hasty rental home purchase. It may take some time to find the right place. So, make plenty of low bids, be patient, and the right place will eventually come your way.