Requirements for Residential Property Investment
Residential Property Research
Do your research: read and research broadly on residential property investment. Learn as much as possible about the business; this will help you to determine whether to move forward with the venture or not.
Residential Property Goals and Finances
Set your goals: setting goals whether short-term or long-term; will help you to determine which aspect of investment is in line with your financial goals.
Plan your finances: you need to evaluate how much money you need for investment, consider the amount you have at hand and also how much you can afford to borrow by assessing your monthly disposable income. Use a residential property investment calculator to get an estimate of the loan you can afford.
Residential Property Location and Team
Find the location: choose a geographical area you wish to purchase the property, it is wise to buy from an upcoming region, that way you will be assured of capital gains on the property.
Choose your team: Find an experienced and reliable real estate broker who knows the region of interest, a lawyer to help with the legal stuff, a valuation officer to evaluate the condition of the property and insurance representative to advise on insurance policies.
Start Investing in Residential Property
Start shopping: now that you have a budget and the region of interest figured out start viewing properties, you will need to see a couple of potential properties to get the one.
Make a deal: you have gotten a house that you like, make an offer and start the negotiation process. Remember to put your best negotiation skills into practice; you aim to buy the property at the lowest price possible.
Residential Property Due diligence
Due diligence: Seek a Land Information Memorandum (LIM) for the property, it is issued by the local council with description of the land title, the permitted uses of the land, official boundaries, environmental risks like flooding, etc. you should ensure that the actual owner is selling and know their reason for selling.
Seal the deal: This is the conveyance process of transferring ownership of the property. It is vital to involve your lawyer through this process to help with the legal aspect of sealing the deal.