Here’s what you should be focusing on when buying an investment property.
How do you pick the right investment property? There’s a lot that goes into the decision, but one key factor stands above the rest.
Let’s say you have to pick between two properties. One is a new-build property on the outskirts of the city. You can begin renting right away, and it probably doesn’t need too much maintenance for 10 years. The other property is older and will need continuous work, but it’s located in the center of the city. Which do you choose?
It may seem odd, but the older property is actually the better investment. Buying a property located in the center of the city is a better choice because you want to find the property that will double in value the fastest. The only criteria that guarantees a property will double in value is the land, not the building.
In the center of cities, there isn’t a lot of land, but there’s plenty of demand. Meanwhile, on the outskirts, the situation is reversed. Even though there’s less maintenance on the newer property, the land won’t increase in value as quickly, so your return on investment won’t be as large.
Hopefully, this made your investment decision a little easier. If you have any questions about today’s video, please call or email me. I am always willing to help.