I have been thinking about buying an investment property.
This year I hit the big 5-0 and it is a milestone.
It is a time re-evaluate a lot of things in life everything from finances to relationships to health.
I have not been too savvy over the years.
A lot of my life has been reacting to the instability around me from loss to divorce to health I haven’t always been very settled. Pensions and financial security have often take an a back seat and not had the full attention from me that they required.
It is definitely time now for that to change.
I have been thinking about buying an investment property in lieu of a pension to ensure a regular income in my old age.
None too savvy with the property market this is something I am going to have to really look into before I make any big decisions.
Why property investment?
I love houses, designing them, decorating them, planning the garden
, everything to do with property and I think I would have a lot of fun with a property investment project.
I also think property is a pretty substantial thing to invest in. I would see it as a secure investment – I like tangible things far more than things I cannot see or touch. They feel solid and sure to
Here is a look at some of the things I think I might need to consider:
Who would manage the project?
I would employ a property management company to manage my investment property for me so I would not have to deal with collecting rentals, advertising or the like. I would like a hand in setting it up to be just right in the first place but I do know my limits!
How to work out the finances
Budgeting would be critical to the success of this project.
I would need to work out my potential mortgage repayments and how much I could expect to get in terms of rent to make sure the two balance out. I would need money spare for contingencies and for me to live off.
This is crucial because the whole point of an investment is a return! I would definitely get a property accountant to help me with the finances.
Firstly though I would work out what my mortgage would be using this handy mortgage affordability calculator and then I would check out repayment terms and compare them to expected rental and property management costs to see if my plans were at all feasible.
There are lots of great mortgage calculators here that could help with this.
It may be that I consider re-mortgaging my current property in order to free up a deposit for an investment house – this sounds complex but actually this remortgaging calculator makes doing the sums easy and speedy.
It is important before I go any further down the road to ensure financially I can afford to do this.
Buy to let or property development when buying an Investment Property?
If I ensured the finances worked out correctly I could make a tidy profit from an investment home. I think I would definitely be thinking buy to let (I like the idea of a steady income) rather than developing my property and sell. But actually property development
is a potential option too and one that might engage my creative side more.
The regular income would be nice!
The importance of a good contacts list when Buying an Investment Property
A great team of builders, plumbers, electricians and handy people would be vital. Though ideally I would buy something that needed very little structural work the importance of reliable and quality tradespeople cannot be overestimated.
Buying an Investment Property is going to take some work!
A mortgage calculator, a look at right move and some reading up about property are my starting points. It’s time to get serious about my financial future.