Ultimately this is a personal decision and what works best for your circumstances. I can offer you some help in making the decision. You have to consider many factors. You definitely need to know what works best for your area at the present time. Are houses selling well or are more people renting? Is your property in a dominant rental area? The real estate market will influence your decision quite a bit. We made the decision to rent as we spent way too much time remodeling and wanted to make maximum profit by holding onto the house for a few more years. At the time the market went either way. We could have dome ok selling but we wanted to do great.
You will also need to consider your financial situation. As most of us know there can be some pretty bad renters. We got lucky and have great ones so far. What will you do if you get a bad renter in that just will not pay? You will need to have the money to make the mortgage payments. Do you have a few months stashed away or can you come up with it if needed? You could even end up with one that destroys the property and your hard work. This could be financially devastating for you.
You also need to consider your life in general. If you rent property you are a landlord. You will have to handle problems that arise with the property. It could even be in the middle of the night that you get a phone call that the pipe burst. Do you have the time to deal with being a landlord? Do you want to be a landlord? Now there are some companies that will oversee these duties for you, at a fee of course. You could also goes months or years without a single problem. To me this is a minor factor but still a factor.
Selling your property will give you instant profit if all went well. But is it the profit you were hoping for? Of course if you rent for a few years you are more than likely to have more equity and walk away with a larger profit. It is a big decision to make and hopefully you will make the right one.
There are ways to better protect yourself when renting. Always do a credit check and get rental references. Look online for agencies to sign up with to check renter’s credit reports. Many agencies can even look at rental evictions. This is an additional cost but well worth it. It probably saved me a huge headache. You will find all sorts of people with all sorts of stories and lies. They think they can pull the wool over your eyes. One thing we learned was to start charging a fee for a credit check and upon approval we would credit it back to the renter. You need to call the rental references. If there is a gap in living addresses question it and be cautious. You also have the right to call their employer. You need take all necessary precautions to protect you financially.
Those wanting to take the headache out of home ownership should consider property management. These people work to take care of the home, and charge a small fee for their services that is on a monthly basis. These companies can be both residential and commercial. However, the commercial companies usually work on an international market.
Property management companies usually manage multiple real estate homes. They will handle everything related to the property, whether it is legal or whatnot. Most property management companies are held to the standards set under the Companies Act. Most of these property management companies are small businesses that are ran by a few people and are very low key.
One of the best aspects that property management companies offer is related to finding tenants for those real estate homes they manage. The homeowner does not have to go through each application for a resident, instead the property management will handle credit ratings and looking at the potential tenant in depth. They will also make sure that leases and agreements are legally binding for both the tenant and the homeowner. They will also take care of any tenant issues that may arise.
The benefits that come with a property management company can save a homeowner a lot of money especially legally wise. In addition, the tenant will have many questions that these companies have the knowledge to answer so as to not trouble the homeowner. Since many times those that owns these homes are usually busy people with other jobs.
Those property management companies that are also in the real estate market and can find tenants for the home; they must be licensed or at least associated with someone else who is a certified real estate agent. Those that are property managers usually have a strong knowledge of interior, exterior, electrical and plumbing problems that could arise and should be able to fix it.
In addition the before mentioned services, many property management services also offer some type of accounting help. And many property management companies include these monthly invoices for you as part of their monthly fee.
Investing in real estate is a great way to make money and a great investment, overall. Despite the recession that we are currently in, real estate is very cheap and there is great money to be made. As with anything else, self education is a necessary tool before plunging into the risky world of real estate investment. Research extensively – online is best and there is no excuse for not educating yourself beforehand. Search for great locations to live or invest in – these days, Central America and the islands are great places to buy. Also, you need to be aware of the country or state’s laws and building codes. Be careful not to get saddled with a property that hinders your freedom.
Don’t be afraid to hire an attorney when it comes to international investment. It is best to have legal advice before contemplating something like buying a property overseas. Central American countries, in particular, have certain laws that you need to be aware of.
Always visit the country itself before you buy. Don’t simply rely on pictures and videos. There are just certain things that you cannot capture on film. How friendly are the people? How is the weather? The smells? Is it easily accessible? How is the crime rate? What is the neighborhood like? You can buy properties under construction, but it’s hard to control the final product. It is probably safer in the long run to just look at established properties in established neighborhoods, but it will be cheaper to invest in up-and-coming places.
Specialize in a certain market and learn everything you can about it. Do want to learn about residential or commercial properties? Waterfront property can be very cheap overseas, but learn about the risks involved with flooding and crime. Many Americans would love to retire in a country like Costa Rica, where the cost of living is cheaper and the view is beautiful. You can be as risky or safe with your investments as you like. Upcoming markets ,in particular, need to be researched before diving into it. You need to get your finances in order before you fall in love with a property. Cash is best, and while hard money lenders are plentiful, you should read the fine print. Overseas loans can be complicated and expensive in the long run. Otherwise, you can get a REIT which allows a corporation to handle your investment.
These are just some tips for you to think about. International investment can be a fantastic opportunity to see another country, appreciate and own some of its beauty.…