Buying an investment property is serious business and why not? After all, we’re talking about massive assets here not only in the literal sense but also financial-wise. Painstaking it may be but one has to spend adequate time in planning and thinking things through. That said, here are the do’s and don’ts to the task.
Do get your financing ready. Because properties cost considerably much, pooling enough resources in their acquisition will likely take time. One has to carefully identify and select the best available sources and prepare them ahead.
Don’t go beyond your means. In other words, make it a point to budget. Remember that getting an investment property has more to it than meets the eye. You’ll have to shed cash prior, during and after its purchase. Make sure you don’t go out of budget or it’ll spell financial trouble.
Do identify your goals. What’s the purpose behind the acquisition? Make sure to identify the end goal and the means to its achievement. Stick to them to avoid taking detours and wasting resources.
Don’t let emotions drive decisions. Doing so won’t do any good. Again, revert back to the previous item in our list.
Do perform prior research. Look up the property and find out everything you can about it. Have it pre-surveyed too before closing. Check if there are any liens or encumbrances on it as well.
Don’t believe the listing straight away. Take seller information with a grain of salt. As mentioned, research well. Agents will want to sell fast and sales talk can inadvertently happen. Check and validate the facts yourself.
Do ask for the proof of ownership. See to it that you are transacting with someone who has the right to sell the asset. Proof of ownership should always be validated before papers are signed and cash is paid.
Don’t undermine the value of opinion. Ask the local neighborhood about the investment property. You’ll never know what you can find. Remember research?
Do pay it a personal visit. It would be silly to buy a real estate asset without having to pay it a visit first. That’s simply a recipe for disaster. Photos, although good, will never suffice and do things justice.
Don’t be afraid to ask for help. When in doubt and you need help in buying an investment property, don’t hesitate to call a professional for help. It may make you shell a few extra pounds but that’s nothing compared to the losses suffered from a wrong decision.