Property Investment Tips For Beginners

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If you are blind about investing in stocks or bonds, then invest in the property is actually a lot easier.

Investing in property means you do not need to know about the mystery of capital markets and securities firms involving his friends, there are only two main parties: the owner and tenant or buyer. The right to use property, the tenant must pay some money to the owner. During the electricity and water still flows and the rent on time, both parties remain happy.

As a new investor, you should consider to get into the property prior to other investment instruments like stocks and bonds. The easiest way to buy a home, remodeling a bit, then look for tenants.

There are many ways property investors to earn extra money without actually working from morning to evening. Some of the categories below are the types of property investments, quoted from, Monday (27/11/2011) you can consider as an additional income or even your main income:

1. Residential

Invest in residential property means you buy a house, apartment, or apartment. The cost of investment in this type of property is the cheapest compared to other properties. After purchase, you can sum up the tenant or sell it back.

You can perform a variety of reforms to the property you rent or buy it before it is marketed. Creativity in the remodel determining rents or the price of your property.

2. Commercial Office Buildings

Investing in property of this kind need substantial funds. Because an office should have some supporting facilities, not just an ordinary house. Need some renovation if a house will be used as the office, but from your initial purchase or build a special building for offices.

Tenant office buildings are usually small companies that are still in developing stage or small and medium enterprises (SMEs). The exact location for this office building located in a busy area and not too far from the city center.

3. Industrial Property

Included in the property industry in the region, among others, for example, the warehousing, car parks or buildings with specific uses. If you buy properties like this should be leased for long periods of time, because its profits would be higher than you sell it.

Because the lease on the property as it has an additional cost from the tenant because the room is used for business so the more profit you can be. In addition, you can save a self-service drinks machines use coins for extra income.

4. Shopping complex

This property includes many kinds of shops, ranging from a small shop in a house, shop and even a large mall. Typically, if you have one of these properties for rent, part of the profits of the tenant is also our right, of course in accordance with their respective agreements. Additional funds from the profits of the tenant is usually played back for the care and renovation of the property.

5. Multi-Use Building

Multi-use building is some combination of the above categories are gathered under one roof. For example, if you have enough money to buy a small building, or maybe some money could be obtained from the bank. So that payments are not too heavy, you can ask the bank to open stores on the bottom floor, while for the other floors you can find a tenant.

Banks that lent you the money will restore some funds to you in the form of UAG rent, so the debt and interest payments are not too heavy. Continue looking for the right tenant for an empty floor, it is better to diversify the type of business so it can better attract visitors.

Well, technically, to lend some money to another party which they used to buy can be included as an investment property. However, such loans were leaning more towards fixed income investments like bonds or, as you lend money to guarantee a given property.

Flowers are given to you in accordance with the agreement previously agreed upon. If there was a big gain or loss on the property which you lend money, it has absolutely no effect on your profitability.

So, Watch for this property investment instrument well before you start investing.


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