Say you’re a greenhorn in the world of real estate, ready to make the first step towards building the foundation of your wealth. Do you buy a house, or settle with a 1 or 2 bedroom flat to buy? Many landlords have differing views: one camp may go for houses as they tend to have more control over the property and the tenants, while the other camp may vouch for flats as they offer lower purchasing prices and grant higher yields.
As a greenhorn though, priority should be placed on profitability, therefore your first step should be to look for a 2 bedroom flat to buy. As a matter of fact, seeking a 2 bedroom flat to buy may even have you spend around two thirds the cost you would pay for a house, allowing you to even purchase multiple properties to build your portfolio. And of course, two bedrooms provide more income than one.
Keep in mind too that scouting a 2 bedroom flat to buy is more likely the best step in getting your real estate career off the ground as it appeals to the larger demographic. The largest portion of any country’s demographic consists of young single men and women, who will be perfect as tenants for a two-bedroom flat. Consider the student demographic as well, which includes university students who will need housing during their academic tenure.
Let us look at some things you need to keep in mind while seeking a 2 bedroom flat to buy:
Be adventurous with your market area
Many landlords while making their first step in seeking a 2 bedroom flat to buy tend to stick to their own immediate area, mainly due to advantages with logistics. This is, however, a popular ‘stumbling block’ in your quest of seeking a 2 bedroom flat to buy. Even though leaving your nest may sound a bit intimidating, it’s not that bad.
As a matter of fact, looking at other territories may present you with better opportunities with profit-reaping and access to better markets. Remember, in seeking a 2 bedroom flat to buy, your aim is to get the best return on investment on your money, and there is no guarantee that you will get that in your immediate area.
Consider the quality of your tenants
While selecting your 2 bedroom flat to buy, it is important to keep in mind that the quality of your market is in direct correlation with the quality of your tenants, as a result, it is best to avoid run-down areas. Not to be discriminatory, however, it is important for you to understand that poor quality tenant cost you money, and that is one expense that you would rather do without.
Consider the quality of your property before purchase
As said before, flats are generally cheaper than full-fledged houses or apartments, therefore, while seeking a 2 bedroom flat to buy, the question of the property’s quality will be at greater play. For one, choosing a property that needs some maintenance may be offered at a discount, which then allows you to save some case.
On the other hand, the maintenance that you will have to carry out yourself may dig too deep into your budget and compromise your profit shares. Therefore, since this is not a black-and-white situation, you will have to rely on your sound judgment while selecting a 2 bedroom flat to buy.
Seek out a letting agency
On your quest for a 2 bedroom flat to buy, the management of your property-to-be should be an element to consider. The fact that you’re a greenhorn in the industry means that you do not have all the time in the world – chances are that you may be juggling a full-time job while looking for a 2 bedroom flat to buy, or even looking for other properties to add to your portfolio.
If you think you are superman/superwoman enough to manage the property yourself, however, then go for it. Keep in mind though that while selecting a 2 bedroom flat to buy, your time should be treated as your best asset. Utilizing a letting company is the best way through which you can duplicate yourself as you duplicate your assets, hence allowing you to spend your efforts on other prospects. Do not be intimidated by the extra cost either; after selecting your 2 bedroom flat to buy, this pales in comparison to your return on investment.
If you go with the option of utilizing a letting company, you should ensure that your relationship with the said company is kept as transparent as possible. Some companies tend to add on costs that should be already included within your monthly admin fee, therefore be diligent and ensure that you completely understand the terms of your agreement.
The location of your property is important
Finally, in the process of selecting a 2 bedroom flat to buy, understand that the challenge of real estate does not lie with a lack of tenants, but however with attracting tenants to your property and retaining them over for a substantial period. Therefore, while seeking out your 2 bedroom flat to buy, ensure that the location of your property appeals to prospective tenants.
It is simple to select a 2 bedroom flat to buy in this respect, as long as you are aware of the level of convenience that it offers to prospective clients. While selecting a 2 bedroom flat to buy, ensure that it is within walking distance of a town center, shops, eateries, university campuses, recreational areas etc. Once you take these elements into consideration, your selection of a 2 bedroom flat to buy will see the long-lasting sustenance of your asset.
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