June 19, 2008
Tips About Investment Properties
When you are looking into purchasing an investment property make sure you have a clear head. Most people purchase a second home for personal use about 78%. The number is growing for the percentage of people that purchase a second home for an investment property. In 1999 only 20% people purchased properties for investments and now the percentage is 37%!
If you are focusing on appreciation value you want to make sure that you are in a prime location for example on the beach, not near the beach. The economy can be red-hot one minute and then cool way down the next; you want to be in the best position possible.
Always be ready to spend more money on investment properties. Be prepared to pay lenders about 1% higher on investment property vs. a regular mortgage and expect higher down payments up front.
Be educated and beware of time-shares! No matter what anybody says a time-share is not an investment property. Always approach a join ownership with caution, many people cannot afford a second home so they think that sharing the cost with a close friend or relative is a good idea. This is not always the case! Before you get into a situation like this think twice you might really regret it later!
I hope these tips help you make the right decision about purchasing an investment property!