Posts By Derek Carpenter
Finding Your First Investment Property
Finding the right investment property takes time and research, but it is essential to succeeding in the property market, unfortunately finding your first investment property is often harder than most investors think. Eagar to buy a property, to start reaping the rewards, inexperienced investors often jump head on into the first property they find and for many of them this error can cost them dearly. This article will outline some of the things you need to know to find the right property that will generate income and not waste it.
You have the choice of searching for a property by yourself or with the aid of a broker. My advice to first time investors is to invest a little money and get a broker to guide you through the first purchase, if your plan is to buy multiple properties than I recommend you use a broker to help with all your properties until you feel confident about going it alone. If you’re looking to buy into a market that you don’t know well than a broker from that area can help you find suitable properties including new properties that have just been put up for sale, giving you the first bite. A broker with local knowledge, who understands the area that you are looking to invest in, is invaluable for both the beginner and the experienced buyer.
Understanding the local market is paramount to your success. Look for any discernible trends in that local property market. If housing prices are falling then there is a good change that the local rental rates will soon follow. Along the same lines, if the local prices have gone up in the past 6 months than the area must be in demand, meaning you will be able to increase the rent without fearing long term vacancies. If your target market is not too far away you should also visit city hall or at least visit their website to see if there are any development or plans for that area which could adversely affect property prices. It is also a good idea to contact the local police department to check the how safe the area is so you can find out if you should provide extra security to the property.
Once you have found your perfect property you need to make sure you have your finances in order. Before you start looking for financing you should check your credit report so you can find any inaccuracies that would prevent banks from loaning you money. Checking this yourself will give you time to rectify your record before letting the banks have a look. It’s best to check with all the credit reporting bureaus to get the full picture of your credit situation. Even if your report doesn’t seem that bad remember that the better you can make your credit report the better the interest rate you will be able to get.
While a renovator’s delight can be an exciting purchase I don’t recommend it for the first time investor. Although it means buying the property at a cost well below anything else you will find in the area the cost of fixing the property to a stage where you can successfully rent it out can very quickly break the bank, and of course the period that the property is being worked on is time that you can’t collect rent. Your first property should be one that is ready to be occupied, one that can start making money as quickly as possible.
You should of course inspect the property yourself and make sure it is too your liking but more importantly than that is to get a professional to inspect the property to make sure it is safe. While you can check the doors, the power points, the taps and the gas yourself, it definitely pays to get someone to look below the surface, beyond what you can see. Have a professional check the actual wiring throughout the house, see if there are any remnants of lead paint on the property and make sure that the building is structurally sound, you don’t want your first property to fall down around you.
I know that when you make the decision to invest in property you are so anxious to buy that you don’t want to go waste time and effort worrying about the property, you want to buy a property and start making money. But when it come to finding your first investment property it really does pay to take your time and double check everything before proceeding with the purchase, not only will it save you money and make it a more enjoyable
Where to Invest?
Where to invest? This question benefit of everyone who cares about his future, and who are or appear periodically cleared funds. For someone standing financial transactions and value for money – a profession, and someone makes a different way and can not decide on those who trust the available funds. To those for whom value for money is not the main kind of activity, calculated this stuff. Today we’ll talk about how to invest money in the bank.
Thus, the most important thing for any investor is making a profit, so you need to invest money. The concept of benefit for his own, but as a rule, its size depends on the labor of the investor, as well as risks.
Consider the case when a person does not have sufficient financial knowledge, but simply wants to invest money and make a profit over time.
The most popular method of investing money is to open a deposit account in a bank. They (banks) to take the investor have surplus funds by a certain percentage of borrowers and offer them loans, thus gaining benefit.
Invest money in the bank – the safest and most appropriate method for those who do not know where to invest money and do not particularly want to be introduced in the financial mechanisms of the state.
The benefit here is obvious: the bank – this is not one man, his speed does not depend on health status or mood of certain individuals, it is – a large financial institution to which your investment will be a small fraction of total assets. If you have an attachment 10, 20 or 50 thousand – an important financial transaction, then the bank – is a familiar everyday process.
At the moment, Ukrainian banks are offering to invest money for various interest rates. In the interest range is in an area 12-20% per annum (depending on the conditions of deposit).
Contributions are different, and various banks in their own name, but the essence are. If you want to invest money and are confident that over a period of time (3 months ago. 6 months. A year or several years) they will not need them; you will approach a term deposit without the possibility of extension and early termination. It should be noted that even under these conditions, banks have provided the possibility of termination, and you may lose interest or even part of the body of the deposit.
If you have any spare capacity, but you can not be firmly confident that after a month they will not be necessary, should be chosen with the possibility of removing deposits of the deposit. In this case the ideal contribution to the possibility of making money on the card: any free resources – refers to the bank, and replenish the account if necessary – withdraw the money from an ATM.
In any bank managers will advise the appropriate deposit plan; your task is only a preliminary review of proposed bank interest.
What are the risks when investing money in the banks? Of all savings deposited money in a bank deposit account – one of the most secure. Agree, very rarely can hear news reports that the bank had collapsed – had gone bankrupt. Since independence, Ukraine whom there are only a few pieces.
Thus, if you have spare cash, you do not know where to invest money, but want to save them for later use, the most logical option – take them to the bank.
Personally, I prefer bank and keep their savings under 19% per annum (this is – not advertising), there are banks that offer higher interest rates or lower. I believe that we should not worry about the very possibility of bank. If he is in the market for over 5 years, has more or less recognizable brand and branch network, besides offer no sky-high interest rates (up to 20% annual) – its services can be safely used.
If after reading the material response to the question: “Where to invest?” Has become a subject for you (you know what your choice – the bank, but do not yet understand the details), the next time we talked about the currency in which to keep their savings. Torque – native, euro – reliable, the dollar – the most famous – so often find novice investors and are sharing, though not always necessary.
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