Investing in real estate, even in today’s volatile market, is the safest way to invest your time and money. Housing today is not the same as it used to be. In many areas of the world, there is a shortage of available housing, which has increased the number of homeless people. Not just single people, either. Families are not able to find a place to live.
That is why investing in a flat is such a great idea, even if you plan on living in it for a while and then flipping it for a profit. There are a few things to remember, like the 10 things to check before buying a flat.
- Budget – The first thing you want to check is your budget. You need to be able to make the payment to your lender, even if you are planning to rent it out, to obtain some passive income. If you haven’t worked up a budget yet, download a free template and get it done.
- Finances – Regardless of how much money you can loan, there will always be the need for a down payment. Unless you make more money than you know what to do with, it is imperative that you save up for it before you start looking at flats to buy.
- Location – As the saying goes, location, location, location. The area you buy the flat in will determine whether it is a good investment. Do your research before looking for a flat. Otherwise, it may end up costing you money instead of helping you make it.
- Water, Power, And Gas – The flat needs to be hooked up to all the utilities that will be needed. Check for all the basics, plus sewage and garbage. Anything required for daily use must be set up before you buy it.
- Construction Quality – The build quality will tell you how long you can expect to own a place without any issues. If it is a stick building constructed as fast as possible, it will not hold up to steady use. Check for things like hybrid flooring rather than linoleum and solid front doors rather than hollow.
- Parking – See what type of parking there is at the flat. It is a common problem when living in an apartment. You are good if the unit has its own parking areas or even a lot limited to residents only. You may want to look elsewhere if it is street parking and first come, first park.
- Technology – The world is in an era of technology. Even if it is not important to you, you should consider it because the people you rent it out to may feel differently.
- Public Transportation – For many being in an area where they have access to public transportation is a number one priority. Make sure that it is available when needed.
- Neighborhood – Check the area that the flat is in. If the location is good, but the neighborhood is terrible, it will be hard to get other people to move into it.
- Return On Investment – Check and see what the rent in the building is because you will need to be close to the average price offered by other owners. From there, do some math and see if the flat would give you a good return on your investment.
When you are looking to buy a flat as an investment, it cannot be purchased using your own personal opinion. You need to step out of your shoes and see it from a renter’s perspective. If it appeals to you in this way, then it would be a good idea to take some time to check it out. If not, move on to the next option on your list.