An investment property is a lucrative income which appreciates over time if managed wisely. Obviously the major benefit of owning multiple investment properties is more financial freedom. Generally the financial freedom is calculated after taking care of any repairs or maintenance. Read this post to briefly understand how owning investment properties is easy if you follow some simple steps.
Serviceability: In simple terms how much will it cost you to upkeep the multiple investment properties you are thinking of owing. As a golden rule when you decide to buy multiple investment properties always make sure you can afford it on your regular income and do not have to make any special mortgage arrangements. The best route to take is always investing in properties that service themselves so that way you can enjoy the financial freedom.
Deposits: Every investment property demands a deposit; so when making the decision of multiple investment properties calculate the deposits for each of the properties you wish to buy. Buying your first property will likely require you to be patient until the value of the property appreciates over time. In many cases you can get an equity loan that completely covers the 20% deposit often banks will help you with the 80% mortgage. So by investing in more properties you can easily come up with deposits using the increased capital gains. However make sure you increase the rents to limit borrowing more.
Time: You need to be willing to dedicate the time to finding the right properties that fit in with your investment plan and you need to invest the time to look at the properties, buy them and do the little things required to keep them running.
At the beginning this is hard, because you spend a lot of time and get very little results. But over time you get smarter and you become a better looker and analyzer. You begin using tools like our property calculators and you get quicker and quicker at analyzing the figures. So don’t be disheartened in the beginning, the more experience you have the easier it becomes.
Decision: Having a will to buy multiple investment properties is not enough; you have to make a firm decision. Often deciding what you want can be difficult, so it is always better to think the big picture and evaluate the pros and cons and then deciding will be easy. The next step is start acting on the decision without which nothing is possible.
Education: Without sound knowledge it is always difficult to build confidence and courage to make a decision of investing in multiple investment properties. Also without the proper education you are going to fall flat on your face and make expensive mistakes. Luckily, because of the Internet and widespread publishing education doesn’t have to be expensive. If you are serious about making a decision on multiple investment properties click here to view land for sale and many other opportunities.