3 Types of Properties That Make a Great First Investment
When we start investing in real estate, it is vital to choose the right type of property. As a real estate investor, the first step is always the most difficult. The fact is that anybody can be a real estate investor, but you also need to know the best property types that are pretty perfect starting points. Let’s show you some of them.
The fact is that many people invest in apartments overseas because those who have a grown-up in a country where the weather is slate grey 75% of the time will use this as a perfect opportunity to get more sunshine. Many people purchase an investment property and actually live in it for a few years before they start renting it out to those who are also looking for a taste of sunshine. There’s always a high demand for housing in sunny locations, and this is something that we’ve all got to consider because if we end up investing in a poor location, it’s going to be reflected in the cheap costs, as well as the lack of longevity. When you invest in a real estate property in another country, you may think you will want to move there yourself one day, but it’s not always necessary, and you’ve got to bear in mind the costs of getting this setup. Depending on the country, there will be additional costs such as real estate fees and local fees.
Housing Near Universities
Rental properties are always popular when they are within walking distance of a university. It’s a good idea to invest in a house with numerous rooms, not just because this allows you more tenants but because it will be less maintenance overall. Many people look at renting out one-bedroomed apartments, but the fact is that it’s a lot harder to get students to rent these.
Homes Near a Primary School
One of the best approaches to investing in real estate is a family home within a suburban neighbourhood near a highly rated primary school. Because families are always looking for homes within school districts, this is a very reliable long-term investment and as families are on the hunt for properties, this means there’s less tenant turnover. But you’ve got to bear in mind that there are families that will use this as a way to step onto the property ladder themselves. It could benefit you to find the right family to turn this rental situation into a permanent home. It’s always worth liaising with a real estate agent to see if this is something that is possible. Because when you find the right family that wants to rent from you but are just trying to build up a deposit, you could come to some form of agreement that benefits both of you, especially if you are only looking to keep your investment for a few years.
These are all sound investments for beginner real estate investors. There’s always plenty more to choose from, but location and proximity are two of the biggest factors to bear in mind.