Cheap Properties Make Great Investments

When you are buying property for investment purposes your ultimate aim is to make lots of money and not have any headaches with bad tenants, right? However many investors get caught up in only buying investment property which they would be happy living in themselves, but they never end up doing that, so is often a recipe for disaster.  Before rushing out to purchase your first investment property it is crucial that you head into the exercise with a clear head and a specific set of criteria that NEED to be met before you make your purchase.   Now just as crucial as having a list of the items you would like to achieve you also need to be aware of some of the mistakes first time property investors make.  An excellent book that is a great start to help you is the recently updated title by Helen Collier-Kogtevs  59 Biggest Mistakes Made By Property Investors and How to Avoid Them. This book has been recently updated from Helen’s last title 47 Biggest mistakes made by Property Investors and How to Avoid Them and is an excellent resource for any investor.

Now when it comes to the value of your property, consider that this property is going to have tenants in it that are not going to take care of the property as they might if they owned the property, it is unlikely to be cleaned as-well, the garden and lawn may not get mowed as often and any maintenance may not get done until you have your 6 monthly inspection.  Therefore it is a great idea to think about how much you really want to spend on this property.  The reason we say Cheap Properties make great investments is because the cheaper they are the less likely they are to cost when it comes time to repair once your tenant vacates.  In contrast if you purchase a beautiful home and your tenants do not care for the property, the expense you will have to go to repair and bring the property back to it’s former glory is going to be substantially more. Cheap properties are much better!!!

 

Courtesy of propertybooks.com.au