3 Things to Look For When Investing in Property

With the technology that is available at our fingertips these days, more and more people are getting creative in terms of investing. One big trend that has become popular over the past decade, is real estate investment. Whether it is rental properties, flipping homes or even buying empty land to build on, this form of investment can be lucrative when handled properly. 

While there are quite a few factors to take into consideration - just as you would with any other investment – you should start with a few basics. One of the more obvious steps to take in getting started in your investment process is finding the right realtor and brokerage. However, that is just the beginning. After you have taken care of the administration part of it all, and it is time to start the hunt, have you done your research? There are at least three things to keep an eye out for or on while you are searching. 

Location, Location, Location

Are you looking in an area that may be considered a “safe” neighborhood, but maybe it does not have the growth projections that a neighboring city does? While safety is important, it is also paramount to consider what steps the government officials in that community are doing, or plan to do to grow the city and businesses. Additionally, it is beneficial to consider the proximity to freeways, grocery stores, schools, and other important infrastructure. 

Property Tax 

Many times, first time investors or homebuyers overlook taxes, or other costs. Although property taxes will vary throughout cities, you may not want to end up in a city with high tax rates as it will dip into your return. Still, it is important to keep in mind what your long-term goal for the investment is. If you choose a city with a higher tax rate, but better school rating, you may be more likely to attract long term tenants. 

Make sure to do your research, if you are working with a realtor, they should be able to help you find this information. Also, do not be afraid to talk to other property owners in that community; oftentimes residents will create social media pages for their cities to discuss things just like this. You can also find the information at the municipality’s assessment office. 

Natural Disasters

If you are searching for investment property in an area that is prone to flooding, forest fires, tornados, or any other kinds of natural disasters, this is something to keep in mind. You should speak to your insurance adjuster to get an idea of what coverage for the property will cost. If the price is too high, it may not be worth the investment in the long run.

Overall, if you are considering a new investment career or project in real estate, it is crucial to do your research. Even beginners can succeed with the right amount of digging and dedication.  Part of the investigation process and research can be made simpler by finding the right buyer’s agent. When you work with a knowledgeable realtor, they will be able to assist you in finding the best fit for your investment. If you would like more information on real estate investment, and to speak to a highly trained realtor, give Key Realty a call at 216-438-1330. We can help you get started in chasing your real estate investment goals today!