HONOLULU (HawaiiNewsNow) - On today's Real Estate of Mind, Elle Zhang (RA) of Coldwell Banker Pacific Properties shares some helpful tips on buying real estate as an investment. Check out video from her interview and her bullet points below.
Summary: A few things to consider if you're purchasing a property for investment
Consider the financial aspects first. Most people invest in real estate for property appreciation and want rent to cover most if not all of the monthly expense. So, invest in a property that fits your available funds for a down payment and consider the rent you can receive for that property. Calculate the mortgage expense, but also include other expenses such as property taxes, insurance, maintenance fee, utilities, association fees, vacancies and repairs.
Real Estate is a solid investment. Many investment properties can be financed, but most will require at least 20% down if you want to get the best mortgage rates. To reduce your monthly expense and get positive cash flow , consider a higher down payment to reduce the size of your mortgage. Consider that unlike investments in the stock market, your investment in real estate is tangible and certain not to lose its entire value like a stock can. Additionally, Oahu's real estate market has shown great appreciation over the long term.
Location is important. For both appreciation and to cover your monthly expense, you need to select a location attractive to renters and to potential future property owners.
Consult with professionals. Always talk with your tax advisor and financial planner to make sure you are thoroughly informed before making any investment. And, engage a professional real estate agent with experience in investment properties.
Example Property: 1137 Wilder Ave #303, $299,000 FS, 2 Bedrooms/1 bath
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