Buying any property dictates that you follow a few tips and considerations before making a purchase decision. Rental property is no different and thus needs you to focus on a few things that may help you decide whether or not you’re ready for the process. Rental property is deemed a long-term investment, but not everyone is prepared for it. It isn’t something that you rush into without serious thought.
Unlike buying a house for self-use, buying a rental property is like starting up a business. You need to check for minimum requirements for rental properties so that you don’t end up inadvertently breaking the law. The following five tips can give you the limelight and impetus to begin investing in rental property:
Research on the minimum requirements
There are certain things that you need to own a rental property, and this is something you should have in mind before investing your money in the field. You can do this by checking the government portal or visiting relevant offices for further information.
Learn from the experts
Never assume that you know everything. You might have bought a home before, but that is not the same as buying a rental property. You need to consult various professionals who have experience in the field so that they can share their thoughts with you. Ask them for tips on how to price your property and what the standard market value is. Another way is to talk to your real estate agent and have them link you up with those who already have properties and are profiting off them. This way, you can arrange a chat with the successful ones to learn more about how you can do the same.
At the same time, you can also get your agent to teach you how the balance units work.
Moreover, you can learn about the rental market through property magazines. What you must make sure of is that you have sufficient knowledge before venturing into the industry.
Don’t be too ambitious when buying rentals but instead, keep it simple. A lot of people make the mistake of purchasing exquisite and elegant houses that everyone wants to live in. Unfortunately, the cost of maintaining these houses when it comes to resale can be a bit too high as you may not know what extent of damage your renters may cause. And the fact is—you will have to foot some of these repair costs yourself.
Choose the right location
It matters a lot where your rental property is and how far it is from your residence. The best property to buy for rentals is one which is not too far from your home so that in case of anything, you are always close by. Besides, you can easily have regular checks if the property is near you so that you identify any possible problems and handle them.
If you’re living in the east of Singapore, consider visiting the Treasure at Tampines launch and take a look at the showrooms. If you’re satisfied with the “Treasure at Tampines prices” after comparing it to the “Treasure at Tampines psf” and taking a look at the floor plan of the flat then don’t hesitate to invest. Still not convinced? Check out the site plan for the various facilities and amenities that would be made available to you!
Can you afford to own a rental property?
Don’t push it. Saving for a while and buying a rental property is still okay. Don’t be so much in a hurry that you end up making the wrong choices and decisions. However, if you do intend on taking a loan for your rental property payment, be sure that you can pay it back. Don’t just do it because others already have.