Today we get a brief insight into taking the plunge and buying an investment property. We focus on the top criteria to get the best properties. We talk about how to shortlist the decisive factors and why do they matter. Let’s say you get interested in the ad for 111 West 57th Street apartment for sale while you are browsing the realtor.com. After all, it is going to be the tallest residential towers in Manhattan. The property is not only meant to reshape the NYC skyline; it will be composed of the Landmarked Steinway building.
When you begin to plan a party, you make a list of all the things you need to organize. You start from catering then move on to decoration then the guest list and the party favours. Each element of the plan gets its list and then comes the part where you actual do the legwork. Now imagine you are in the store moving fast and furious through your checklist of decoration. Midway you see the aisle for snack foods and jump to add a few of those to your cart. From the food aisle, you see the section that has just the perfect party favour item. You leave stocking up on food for the moment and move on to buying return gifts. After a long day at the shopping store, you return all ready to take on the final phase of the party. While you are decorating, you realise you forgot to buy two of the items on your list. Then when you are doing prep work in the kitchen, you see a few of the ingredients are missing and so on and so forth.
What happened? Your focus shifted. You got distracted, and instead of having every essential item for the perfect event you are left with half-hearted attempts. Why did we detail such a basic story? Because when it comes to investing in real estate, your focus should be absolutely on your selection criteria i.e. the checklist. When you are looking for an investment property, it is hard not to get excited. There are an N number of niches and things that tempt us. So, to keep you from splurging your money in strategies or properties you do not want but “look good”, we create a list of decisive factors for buying. Your list should:
Contain defined criteria
Be able to remove deals that are meant as distractions
Help you narrow down the choices
The investment property puts a tick in front of almost all items in your criteria list:
You’re Cash Flow
Size of Property
Units in the Property
Condition of Property
Appreciation Potential of the property
Which consequently means it is a suitable property to buy. Though a key point to note here is that no one can elaborate on what your investment property criteria should or should not be. Most of it is personal preference though the above checklist acts a good basic foundation. Before opting for a property, check if all the criteria is suitable, have an idea of more than three properties, and finalize the one if you are 100 % satisfied.