Saturday 2 January 2016

STEPS TO TAKE BEFORE BUYING A RENTAL PROPERTY

If you've ever dabbled with the idea of becoming a real estate investor, now may be the prime time to take the plunge.

According to expert real estate agents, this is the first time in years where the perfect storm has occurred: In many areas of the country, housing prices are lower than ever, and interest rates are equally as low. This means that it's inexpensive to borrow and buy, creating the perfect opportunity for newbie and experienced investors alike to purchase a new property.

Before you decide to invest in a second property, it's important to use the following criteria to make sure you are buying a good home that will serve as a solid investment:

1. Begin with the right real estate agent. Working with the right realtor can make or break your experience in buying an investment property. If you are searching for a home in a specific area, it is best if the realtor is well-acquainted with the neighborhood and region to find the right home to meet your needs. If you are looking for a rental property in another city or state, work with a local realtor who knows what they are doing; a local realtor can also recommend an Austin insurance agent for affordable homeowner's insurance when you buy.

2. Research the quality of the neighborhood. The area where you buy can affect the current value of a property, as well as how much it appreciates or depreciates in the future. If you plan on renting your property to tenants, the local neighborhood will also determine how easy it is to find a new renter after a lease ends. First time property owners may do best in a highly populated area with regular rental turnover, such as near a University or medical center.

3. Check out the local school system. If you are renting out a house with several bedrooms, then you may want to count on the fact that a tenant is likely to have children and will be searching for a good school district. Before signing on the dotted line to buy a rental home, make sure that you are satisfied with the ratings of the elementary, middle, and high schools in the area.

4. Find out more about local crime statistics. If you buy a home in a high-crime area, you are setting yourself up for disaster in the future. You may have to deal with tenant complaints about regular criminal activity. When researching crime statistics for a neighborhood, it's best to check with public records or the local police station. Specifically, find out more information about petty crimes, serious crimes, and vandalism rates. In addition, make sure that you have a solid homeowner's insurance policy in place that will protect you as the landlord, as well as your tenants in the case of theft or vandalism to your property.
Insurance has bagged a lot of misconceptions from people all over the globe. They just think of insurance in a negative light even if they have no idea what is general liability insurance or so.
A lot dislike insurance because it is expensive. They find it a total rip-off because they are not able to get something out of it right away. It is natural for people to want things that are actually felt and seen, over those that are not. Insurance is not one of those that can be seen and touched because it is intangible and it's not even something for the present.

Rarely do businessmen appreciate asking for a worker’s compensation insurance quote from their insurance agent. They believe that this would be a burden to them. But they can actually benefit a lot from it. Here are some of them:

1. Preparing for the future-like personal insurances, business insurances also help you prepare for your future. You can never tell what will happen in the future. No one knows exactly when or how, but it is likely that some incidents would occur in the future. To protect your business, you really have to prepare for it.

2. Taking care of assets and employees-Insurance covers a variety of aspects in your business even your human resources. These are the things that compose the core of the business. These are the priced jewels of all businessmen. If one is paralyzed the business will go down the drain. Insurance can aid you in case something happens to your most valued assets.

3. Earning savings-you might feel bad about paying for insurance upfront. But looking at it in a long term view you can actually earn savings from it. Think of the cost in case your client files a suit against you. If you have insurance it will be able to take care of this matter.

4. Giving you peace of mind-You will really be secure if you know that there's insurance to back you up. There's nothing more important in business than to take care of those that give you your profits. It's even more important than money itself.

These are just some of the perks for insuring your business. Knowing this, you might actually want to get a general liability insurance quote now. But before you do that, keep in mind that you have to be careful in choosing the insurance company that you deal with. If not, then the money you worked hard for will be wasted. Take care of your business and your business will take care of you.