For individuals keen to secure their financial future without inheriting the typical risks that come with the stock market, real estate can be a solid choice. It’s widely renowned as more secure and provides you with a means of investment where you can take an active part in where your money goes and how it’s spent — as opposed to the passive approach you’d usually have to take with the stock market.
Knowing what to do so your money gets safely invested in the right property for you, however, can be easier said than done, making it easy to make the wrong decision.
Your Quick start Guide to Investing in Rental Property
Do your research and think carefully, and you’ll be well on your way to making the right call.
How Should You Invest in Rental Property?
First things first — you need the cash, but getting it doesn’t have to be difficult. Real estate is one of few areas where you can truly leverage the bank’s cash to make a down payment and leverage capital to invest quickly.
If you can find somewhere you’re interested in, it’s best to invest in your local area. This will allow you to check up on the property personally. This isn’t essential, however. Your focus should be on finding the right property for your requirements, and if there aren’t any within your local vicinity, you should look elsewhere.
What Building Type Should You Choose?
Just because you’ve had your heart set on owning another townhouse, it doesn’t mean it’s the best option. To make the right choice, take into account the amount you’ll have to pay to get your business fully insured, as well as how difficult it will be to get the property to a standard where it can warrant a comprehensive level of cover.
Multi-Unit Buildings (MUBs) represent excellent value for your investment. Although they represent one of the more premium building types when it comes to insurance costs, the rental income you can generate from them is second to none.
Hiring a Property Manager
Regardless of which property type you invest in (although this is particularly important for MUBs), you should focus on finding a property manager. For larger investment properties, you should look out for property managers with prior experience on both the mold and no-smoking addendum. This is crucial to ensuring your building is compliant with any insurance policy you take out.
If you’re still uncertain, listen to what past customers say. Previous reviews are an excellent indication of the service you can expect to receive from a property manager.
Benefit from the Experience of an Insurance Broker
When selecting coverage for your MUB, don’t take a gamble on a policy. Speak with an experienced insurance broker and find the best one for your needs.