Hello people from all world and Leo Finance. Today I want to write to you about some very important points that people should consider when buying a rental property.
So, the first point I want to bring up here is about financing real estate. Why shouldn't we do this??
We should not finance real estate because we will be paying a lot of interest on this financing. I don't know how it is in the US, but in Brazil the interest on real estate financing is very high. At the end of the financing, the person paid for 5 properties and received only one. This money that it used to finance, if it had been invested in stocks, for example, it would bring a great return to it during this financing period. The best thing is to combine the money into a fixed income and pay for the property in cash.
Location is the most important item when buying a property. The property can be very beautiful, with very good construction, the desired number of rooms, however, it will be of no use if this property is located next to a slum, a place with a lot of noise, with a lot of violence or anything else that removes its quality. We should always look for the best locations at that time. This will make more tenants appear to rent the property and it will not suffer from vacancy.
Hire a lawyer. The lawyer is super important when buying the property, because he is the one who will check if the paperwork is all right. If the documentation is wrong, do not buy this property, because the headache you will have up front will be immense.
Do not buy real estate on the plan, that is, real estate that has not yet been built and was only planned. Anyone who buys real estate off the plan is running a huge risk of the property not being built. When the person does this, he buys it because the property usually costs about 30% less than it would cost if it were already built, however, if the construction goes bankrupt, the person is left without the property and without the money he invested in the purchase. She can even go to court to get the money back, but it will take years and she may not be able to.
Finally, a very important point is that the property is not too big, or does not have many rooms. The person may think that buying a 3 or 4 bedroom apartment will make him earn more with his rent, however, according to several surveys carried out, these larger properties tend to remain vacant for longer. It is more common for families to rent 2 bedroom apartments.
That's it folks, I hope these points I raised are useful for you. Thank you very much and good afternoon!!
source of picture:
http://www.forumdaconstrucao.com.br/conteudo.php?a=33&Cod=2482