Investing in real estate is a lot easier to understand than rummaging through the stock market. All you need to do is have a property, find a tenant, sign a contract and rental fees will come into your account monthly.
Ideally, any land can breed profits depending on how you manage them. Make yours a profitable one with these simple tips.
Making your rental property a profitable investment
- Size and location
You had your eyes set on that motel for sale in NSW. Before plunging deeper, resortbrokers.com.au suggests checking its size and location. Is it strategically located? Is it near commuting stations? Will tourists or tenants want to live in that property size? If your answer is affirmative to all these questions, then it is worth giving a closer look.
- Target tenant
You have your strategic property, knowing your target niche is the next important step to earning a consistent profit. Tourists, students, and the working class all have different needs and preference. Knowing your niche can help you plan your business operations about a specific group of people.
- Furnished or unfurnished?
Tourists would definitely want a furnished unit while families would more often prefer having an unfurnished one. Knowing your target tenant can help you decide whether you should or should not furnish your property before renting.
- Compute your expenses
As much as possible, purchase your property in cash. Meaning, buy it when you can. This doesn’t mean you should skip the mortgage, it just means you have the means to pay for the monthly bills (if you decide to take one), without having to apply for another loan. That way, it can function as an effective investment rather than a liability.
Investing in a rental property might be easier than the stock market, but like in other businesses, proper decisions and actions should be taken to ensure the business growth.