Finding ways to Put Your Extra Funds to Use? Real Estate is the Way Out Dec 18, 2018 | Commercial Property Loan Investing almost all of your funds in a property is a big call, and hence must be taken carefully. Investment related hiccups or setbacks could cost you heavily, and not just financially but in multiple other ways. It is important that the decision of investment is taken only after complete research and study of the property you are going to buy. While making an investment, if you get impressed by the property but not have enough funds, you may also borrow investment property loans. Your Finance Adviser brings you some valuable tips that you must keep into consideration while buying a property. * Location- o While making any investment, you must consider the location where you are planning to invest. There must be chances of growth in terms of population, economy and local infrastructure. o You must be familiar with the location where you are investing your funds. This does not imply that you should invest in your own neighborhood, but in areas where you are aware of your potential investment location. o You must take this call on your own by researching well about the area, starting from information related to vacancy rates, demographics to council spending and capital growth rates. * Return on Investment- o Before investing, you must keep a check on the return on investment that you would yield out of your property. Be sure of the rental yield trends when deciding on an investment property. You can make the decision easier using various property investment tools online. o The investment that you make should be in your favor not only in the present but for the future as well. It must be capable enough to offer you valuable returns. Review the latest vacancy rate data in your desired area; investing in an area with low vacancy rates significantly limit your chances of an empty property between tenants. o For instance, while markets like Sydney have been great for capital growth, they are expensive to buy and equally expensive to hold as well. * Future prospects- o Find out what plans would work the best in your area and then determine what your future would look like. If you believe that future growth prospects are high in a certain area, you may also choose to borrow investment property loans. o Do some research on Government and Council websites that display information on infrastructure projects online. With this information, you can get in touch with the local council for a detailed review. o It is also prudent to keep an eye on commercial projects such as schools or shopping hubs going around your area. Such residential developments directly imply higher investment-related growth prospects in the future. * Maintenance cost- o Look for a property that you can rent-out immediately unless you have plans of renovating the property before renting it out. o For instance, properties with pools or large gardens demand a lot of care, whereas a smaller flat with a grassed backyard is much easier to maintain. o However, you must not ignore the needs that your tenants would have. While cutting down on the maintenance cost, do not ignore the necessities of your tenants. Choosing a valuable property for investment is a crucial decision. It is therefore advised to seek the assistance of specialist like Your Finance Adviser who would guide you in the right direction today, tomorrow, and thereafter. Experts in the field would guide you on the right path using certain property investment tools that would benefit you in numerous ways in the long run.