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Investment Property

Jan 26, 2008
Technically, investment property can be understood in the terms of buying any property with the intent of gaining return. This investment property can be any type of venture like vacant land, apartment buildings, duplex or single family homes and even any type of commercial property.

The "investment property" actually is termed to the property, which the owner does not occupy or occupies only the half part. Consider these points as well regarding investment property:

1) The concept of possessing investment property is increasing among people since it carries a percentage of surety in terms of its returns (return on investment or ROI). Mostly people opt for land as an investment property for reducing their taxes because this is an assured way of income that can be given on lease or even sold at high prices later when the market prices bear high rates. Apart from this, investment property can also be bought from auctions and even be inherited. Many also invest in a property for securing their financial life after retirement.

2) Many beginners follow the strategy of buying a duplex, staying in one part and the other part is given on the rental. This helps in paying off the loans while the excess money collected becomes a profit for the owner. In this way, the owner can then purchase another investment property and the cycle continues. The fact is that the investment property is usually purchased mainly for gaining income by renting the property, profiting by overtime from appreciation, and for selling it latter at higher prices.

3) Investment property is one of the most popular mediums to secure out financial assets. However, buying an investment property is not a child's play. A detailed plan of action is very important to ensure that you invest is in the right direction.

What to Look for in Investment Property

Here are some guidelines that you need to keep in mind when looking for investment property. When looking for the investment property, it is very important to survey for the most profitable geographical areas that have higher in property rates and also decide upon the property-type you would like to invest in long-term

In addition, it is advisable to consult professionals; who are well versed with the practices of investment property, like investment lawyers and estate agents, and seek the help of the financial experts when buying commercial properties. Also plan a strategy of how to buy low and sell high along with your friends or spouse and solicitors to make sure that you get the best offer to on the desired investment property.

Before buying any property, it is necessary to inspect the property to note any shortcomings, as you will have to spend a bit on repairing any faults to increase the income aspects for higher rentals.

After you have bought property, make a proper taxation strategy. Your success in this matter also relies on property management and mortgage management. The "investment property" can only be termed successful if the expenses associated with the property like the loan, taxes etc, are fully funded by the income which you receive from this property in the form of rentals and if not, then you need to redesign your property strategies.
About the Author
Parmdeep Vadesha is a property investment expert and founder of the largest community of property entrepreneurs on the web who buy below market value properties from distressed homeowners facing repossession, divorce and bankruptcy. He writes a monthly newsletter for 70,000 property investors worldwide - http://www.Property-System.com
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