Investing in real estate has never been easy. In a country recovering from a previous housing bubble that caused an economic depression that affected the whole world, people are still very weary of the housing market. Even when timers are getting better the practice of investment has changed a lot. If you are a first time investor in the real estate market you will definitely find it relatively hard to get through the ropes. You might not even be sire of the kind of property you want to invest in. It is important to note that real estate has for long been one of the most attractive assets you would want to invest in. If done correctly real estate investments can yield a lot of profit for you.
However as a first time investor or even a continuing investor there are factors one needs to first consider before you make any investment. Investment is real estate is all about niche and once you find it and master it then you are on your way to huger profits.
You first need to consider the neighborhood that the property is located at. You want to ensure that your property attracts tenants and to do that you need a house that is attractive to tenants. You will need to be secure and have access to amenities or facilities. You also need to consider the kind of tenants you will be attracting. If for instance your property is built for students then you might want one that is located near a college or else you risk facing vacancy regularly.
Taxes are also a major factor. Property taxes are sometimes pretty hefty and if you are not careful might dig a lot from your pocket. It is also important to note that property taxes vary depending on a variety of factors. Thus it is important that first you be aware of the amount of tax you will be paying on that piece of property and thus consider if you are willing or able to pay. It is also important to note that high property tax is not always a bad thing provided you have long term tenants.
Security is one of the biggest factors considered by tenants when looking for homes or apartments. As an investor you want to ensure that the property you buy is in a secure neighborhood. No one wants to love in a place they know to be full of criminal activity. To get a correct perspective on the security situation of an area you can go to the police or the library where you will be able to get the right statistics for the area. Be keen to check on facts such as vandalism rates, petty crimes and other serious offences.
Social amenities are always a big factor when someone is selecting a place to stay. Everyone wants a place that has access to a large variety of amenities that they can enjoy. These are gym, parks, movie theaters, shopping centers and so on. You can get such information freely on the internet or at the library as cities tend to have lots of promotional literature.