If you are looking to turn a profit, then property may be the ideal investment for you. Here are 5 important lessons:
1. Look at investing only in small residential structures such as two or three bedroom family properties, apartments and two/three/four unit buildings, etc. These properties weather the economic conditions, whether they are good or bad.
2. Don’t always go with the suggestion that you should use other people’s money. The more money you have available, the less cost you have to pay out to other people for the use of their money. If you can save in a special account until you are ready to invest, this may be preferable to risking a big mortgage that you cannot afford. It’s good to have low payments on the mortgage, so there will be extra funds available for your needs.
3. Work out the potential value of the property you are looking at buying on the basis of its current cash flow. Also consider cash flow when selling a property.
4. Never let your own personal tastes get in the way of property investment. In other words, don’t worry about what the property looks like, look at its possibility to earn you dollars in net rents. Properties needing renovation, purchased at a good price, end up being very good investments.
5. Having a property where you can charge a low rent lowers your risk. There are always people able to afford a rent of $200 – $300 per week, depending on the size and whether it’s a family property or a single residence. The chances of your property remaining vacant for long if the rent is low are slim. Watch out for expensive rentals because people who pay the high rents are few and far between and you don’t want to get caught when the current tenant moves out.

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