Property Investing in The 21st Century

Invest In Waterfront Property

If you’re investing in property, you’re probably on the lookout for the next hot area so that you can buy now for cheap and flip it for a big profit later. You already know that the best type of property to buy is one that will bring you a profit and if you want to make big profits, you should seriously consider buying waterfront property.

Why are waterfront property investments sizzling hot?

For the most part, no more water front property is being made. Unless there are new man-made lakes going in somewhere, there are a limited number of waterfront homes and land parcels available so it stands to reason that the property investment will be a good one, eventually. You might need to bide your time a little but those scenarios tend to be the most profitable because the costs are low now which may even mean you can buy multiple pieces or buy a large piece of land that can be severed later on.

People love waterfront cottages or vacation homes and developers are regularly buying large areas up and making communities out of them. As areas outside of major cities get populated for vacationers, new area pricing starts to climb. If you can buy a piece of lakefront property in an underdeveloped area that’s not too far from a HOT area, you could be laughing all the way to the bank in a few years. Maybe it’s time you seriously thought to invest in a waterfront property.

Mortgage Free Retirement

A lot of people want to be mortgage free by retirement. In many cases, the timing works just right and the major monthly mortgage payment frees up significant amounts of their money. If you time your mortgage being paid off with your leaving your job for retirement, you’ll have more money to spend on retirement.

But how much better would it be to free up that big chunk of money MUCH sooner?

Here are some ways you can increase your monthly income NOW by paying off your mortgage sooner. That way you can grow your retirement income and do MORE in your golden years. (And maybe even retire sooner than planned!)

* Move to weekly, bi-weekly, or accelerated bi-weekly mortgage payments. Instead of paying a monthly fee, you’ll have your mortgage paid off years sooner.
* Invest in a second piece of property that can bring you rental income AND pay off the mortgage on that property. Flip the property in a few years for a profit and pay your mortgage off PLUS have money left over.
* Rent out a room (or convert your basement into an apartment) and use the rental income to pay your mortgage off sooner.
* Downsize to a smaller home with a smaller mortgage payment now. Pay the same monthly or weekly fee you’re paying today so that you get debt free sooner. If you’re an empty nester, you’ve probably got plenty of spare room that you don’t need.

The mortgage payment is probably your biggest expense so the sooner you can free up that money, the sooner you can either put more towards investing for your retirement OR be more financially carefree!

Great Investment Property

Once you start investing in property it can become addictive. It can make you a lot of money and leave you feeling very secure about your financial future. It is almost like opening a bag of potato chips and trying to eat just one. Or, like playing the game Monopoly which can be addictive as you watch your portfolio and the pile of money in your possession both increase.

You might start off with one piece of property and once it’s either paid off, flipped, or generating income for you, you might get ready to purchase another. Some property investors buy up property in one area and others diversify and buy rental properties, vacation properties, commercial properties and purchase land as well.

How do you find great properties to invest in?

Here is some help:

1. Subscribe to mailing lists. There are a lot of them out there and you can subscribe to blogs or to information about specific areas and specific types of property or about learning about investing in general. Subscribe to this blog here.

2.Google alerts. If you have a Google account, you can create an alert that will send you an email based on particular phrases turning up in search engine results so you can, in effect, scope the search engine for new property listings.

3.Find a guru. Find property investment gurus / mentors so that you can follow their advice. Some may have blogs or mailing lists that you can subscribe to.

Investment Property Made Easy

If you’ve decided to invest in property, renting it out is a great way to ensure that the property is paying for itself. And, if you’ve made a great investment, chances are there will be some income on top of that monthly mortgage payment.

When you own an investment property that has a mortgage payment, you want to be sure that you aren’t going to be left in the cold with tenants who don’t pay on time. You’ll also want to be prepared in case the unit is vacant for a while so it’s important to:

1. Have several months of mortgage payments set aside and
2. Find the right tenants

Saving some money for emergencies such as repairs and covering payments if the property remains vacant for some time is part of good financial planning but:

How do you find the right tenants?

* Have prospective renters fill out an application
* Do an interview and get to know the tenants
* Do a credit check
* Look at debt ratio of the tenant to see if paying on time might be a problem
* Check references
* Ask for a deposit (check local laws about requirement)
* Sign a lease that clearly outlines roles and responsibilities in keeping the property in good condition and other matters related to the property
* Be a good landlord and chances are, the tenants will be better tenants

Be a good landlord

Being a good landlord can facilitate a great relationship with tenants.

Once your unit is rented, do regular inspections (within legal requirements for that area) to see that the property is well cared for and if possible be on friendly terms with the tenants. Make repairs promptly and consider incenting the tenants to keep the property in good shape by offering to pay for paint, wallpaper and reimbursing them for improvements done. Having a good relationship with their landlord will increase the possibility of keeping them there long term. Being approachable about potential problems will work in your favour as well. Problems can happen but if a tenant likes you, they’ll notify you of issues such as financial problems or giving plenty of notice before they vacate. Investments always have a certain element of risk but careful planning will minimise the risk of financial loss.

Investing In Foreclosed Property

When you look at investing in a property that needs some renovating before it’s rentable or flippable, it’s really important to ascertain the degree of fixing required before buying.

Very often, you can get a great deal on a foreclosure but in many cases the family who previously lived there suffered hardship for some time so things may have been neglected. It’s worthwhile to do a thorough inspection to check to ensure that it’s not just fresh paint and cleaning that the home needs.

Here are some possible repairs that might be needed and these are listed in reverse order of importance/expense/hassle. The first few items on the list really aren’t typically that expensive or costly to deal with. But, as you get down the list, you’ll want to really consider whether or not this investment really is worthwhile. Some of these items, if present, could make the costs and hassles counterproductive for you so you may decide to either: lower your offer or even decline to make an offer on the property. Before making an offer, you also want to be sure you’ll get financing and / or insurance and certain repairs could make this difficult.

1. Cosmetics. Things like wallpapering, painting and basic cosmetics are easy and inexpensive to deal with and don’t impact the home too much.
2. Replacing flooring, fixing walls, replacing tiles and carpeting usually aren’t too expensive to worry about.
3. Electrical and plumbing issues can be a little more expensive. You want to be sure the home is up to code and some upgrades could get a bit costly.
4. Structural. Worries about the roof and the foundation could be a concern and will require careful assessment for safety and expense
5. Serious concerns such as asbestos or getting permission to renovate due to building status in terms of heritage status and zoning are worth getting professional advice about.

A little research into a potential investment property or foreclosed property will go a long way in helping you make wise investments so you can make money on your property investments.