In this day and age with news so readily available, you’ve probably heard about the new tax laws. However, you may not have heard about what this means for you in your property search. We won’t go into all the details, but basically these new laws provide landlords with an extra incentive to invest in local properties.
According to the National Association of Realtors, the new tax laws could lower taxes for homeowners and individual tax filers. This makes it an excellent time to begin investing in real estate.
However, if you’re going to invest in real estate there are a few things you should know first. Here’s a quick guide to investing in Lake Norman real estate.
Find the Right Investment
This is crucial to being successful as an investor. Before investing in a particular property, you should go through a checklist of questions. They include:
- Will this property give me a good return on investment?
- Are you in a good financial place to invest?
- Do you have the time to maintain rental properties, if that’s what you’re interested in investing in?
- Are you prepared for the responsibilities of a landlord?
Return on Investment
Let’s break it down. To begin, we suggest that all investments follow the 1% rule. This means that your investment should be returning 1% of the money you put into it (including a mortgage) every month.
So, if you invested $100,000 into a home to rent out, it should be netting you around $1,000 a month.
Get Your Finances in Order
If you’re planning on taking out a mortgage to invest in a property, we recommend becoming pre-approved before you start shopping. This way, you’ll know exactly how much the bank is willing to loan you so your budget is already set.
Prepare to be a Property Manager
As with any home you purchase, investment properties are not immune to the problems of everyday life. Set aside a savings account in case of an emergency.
Do not touch this money unless there is an emergency and your investment property needs a large repair.
Be a Good Landlord
Make sure the property you’ve invested in is in perfect condition for new tenants. It should be thoroughly cleaned and cared for so that tenants will be comfortable and happy.
Be proactive and responsive in taking care of the property. This is also a good financial decision, because you’re less likely to face property problems down the road if you take care of it from the get-go.
Need Some Investment Help? We’ve Got You Covered
Whether you’re looking for information about investment properties in the area or market statistics, we’re here to help. Just give us a call today to begin learning more about investing in the Lake Norman area.