We are here to help. We would like to get you ready. However, we would like even more to clarify some common misconceptions that owning a property to generate rentals as a passive income is easy, so that you would become aware and informed before you get feet wet.
I just need to have enough money and financial backups for my investment. If I invest on a decent property at a good location, I will be set!
You are right about the location. However, any up-and-coming vibrant areas could be a consideration as well since those areas could cost you less. It also depends on your location in the world. Many major cities are exploring new territories and developing satellite cities or towns. Try and expand your vision a bit further to these potential developments for your long-term investment project.
I am looking into a long-term investment therefore I am prepared to lose some in the beginning. It is how this works.
Not necessarily. Some current rental properties which are up for grabs may already have a long-term rental contract in place. Sometimes, all you need to do is to write the cheque! However, as an investor, you also need to look further and see if this investment is sound. People give up their current investment for different reasons. Some may want to switch to a bigger pond. Some may forecast a downfall of investment and just bailing out. Educate yourself to know the market trend so that you may also foresee what is coming towards you.
I have seen many house-flipping or renovation shows on TV. It seems very doable. If they can do it, I can do it!
As seen on TV, is not always that glamourous. It may look and sound easy, but there is actually a team of experts behind those TV programmes to do the job. If you are thinking of flipping a house and turning it into an income generating source, you need lots of planning. As well, it is not a one-person job. You need people. Yes, it is doable, but it takes time and planning.
I have prepared to put in a lot of time and money into investing a property. I am ready to receive my first rental cheque.
Hang on future mogul, responsibilities such as building a landlord-tenant relationship, maintenance of the property, management of the property and tenants (if multiple), etc. are parts of the package as an investor. The property will not and does not run on its own. It may not always be bad but just be prepared for some tedious work such as negotiations and even legal matters. Do some research and treat it like a business.
In order to cut cost on renovation and maintenance, I will have to learn most of the household DIY skills.
There are many creative ways to cut cost if you cannot afford professionals to do the jobs for you. Whatever you do, safety and legality always come first. Otherwise, you would end up spending more.
Getting an investment property as a source of passive income is exciting and prosperous. Knowing the smart way to do it could be helpful and hassle-free. Our Property Life-Solvers are your people. We specialize in real estate issues and property management advisory to guide you through with a proper mindset. If you are feeling overwhelmed by the whole process, come and talk to us. We are unbiased. We are here to help!