Buying a rental property is a big decision, no doubt about it. But over and over potential buyers pay too much attention to these popular myths that just are not true. So, if you are thinking of buying a rental property, it is essential that you take the time and educate yourself with the right facts. Here are some common myths regarding a buying a rental property that you should ignore.
You Need Experience or Training
you need to have business training or previous experience to be successful. But, this just is not true. When it comes right down to it, all you need are basic budgeting skills and some common sense.
The Real Estate Market is not Where I Need it to be to Invest
People are constantly trying to predict the market and figure out whether it is a wise time to invest. However, a lot of real estate professionals say that the ideal day to invest in real estate was yesterday, the second best day is today and the worst day is tomorrow. When it comes to real estate investing it’s not about timing the market – it is actually about time in the market.
All Real Estate is Going to Increase in Value – Guaranteed
In a lot of ways real estate is like a yo-yo that is on an escalator: it goes up and down quickly, but ultimately it is always going up. All that said, buying a property and waiting for it to increase in value is not a great strategy. You need to take the proper steps to maintain it, make value added improvements on an on-going basis, and as a landlord, ensure that your tenants are respecting your property. The sad reality for many real estate investors is that a neglected rental property can end up being a money pit instead of an income generator
Your Rental Property Needs to be in the Same Neighbourhood as Your Primary Residence
Proximity is great asset, but by no means is it a must. There are some easy ways to make sure properties are kept up and kept safe without you being around the corner. Thanks to the latest technologies, you don’t have to worry about being on site or nearby 24/7. Smart home technology is great for controlling temperature, lights, locks and so on. And if you’re at all uncomfortable about being so far away, a property manager is always an option.
The Only Thing You Need to Get Started is a Downpayment
There are a multitude of costs that are associated with running a rental property including insurance, taxes, maintenance, repairs and so on. A cash flowing property is a great investment, but even so, it is critical that you have money set aside at the start for the general running of the property is a must.