A Few Things To Think About Before Jumping Into The Property Biz

Turning A Dilapidated House Into A Dream Home-Chispa MagazineIf you have been searching for a new career, you might have decided that you have no interest in having another boss. We couldn’t blame you for making that decision. Having a boss constantly breathing down your neck is annoying, stressful and it feels like you’re not living your own life. The good news is that these days there’s no need to be in that position. Instead, you can think about making an investment in your own career that you’ll be able to run yourself without that type of interference.

A property investment business could provide this opportunity. It’s also a career choice that is going to lead to style and swagger. Do you ever see a guy driving down the street in a brand new Mercedes S Class? We guarantee you, he’s probably in the property game. Or, perhaps you want to live in a stunning home? Flipping properties could be the way you’ll be able to afford it. However, before you get carried away, there are a few little details that you need to know about property that could be important for the future.

You Need An Awesome Credit Score
This is the first factor to be aware of. You will need to make sure that your credit score is squeaky clean and shows that you can be trusted when borrowing money. Borrowing is the only way you’ll be able to afford the property that you want to invest in. If your credit score isn’t as rosy as it should be, we strongly suggest that you invest in the services of someone who can help you with that. There are financial experts that can provide you with the knowledge you need to completely clean up your credit score and get it to the number you need it to be for a loan company to see you as a sure thing.

Once you sort out your credit score you will be able to borrow to buy a home for investment purposes. Remember, when you do this, you will be taking on a substantial risk. Borrowing always comes with interest so you need to make sure that you can handle this type of risk. Once you’re on the property market, you won’t be able to get out quickly if you discover that having a large debt hanging over you isn’t particularly comfortable.

You Need To Know About Premises Liability
You might already be vaguely aware of premises liability, but we’ll break it down for you. Whenever you own a property, you will be responsible for whoever is on it at any time. That means if anyone is injured emotionally or physically and it was your fault, you can be held legally accountable. That is particularly important if you decide to opt for the route of renting property because you’re going to have tenants and if they get injured they can blame you. We’re sure you’ll agree that this is a problem, so how do you handle it?

Well, the best way to look at it is to understand what happens after someone is injured on your property but imagining that you are the victim. If you are the victim of an injury on someone else’s property, what would you want? Naturally, you’d want damages and compensation. Law firms like Craig Swapp & Associates can help and are ready to handle cases like this. How much could you earn? Damages can vary, but it’s not uncommon for them to range in the hundreds of thousands.

You can probably see now why it’s in your best interest to avoid an issue like this. So, first make sure that there are no health and safety issues in any building you own and be prepared to accept this responsibility if you become a landlord.

You might wonder whether there’s any way to pass on health and safety responsibilities to tenants. For that, you’re going to need a lawyer, an iron-clad contract and a tenant who’s willing to make that kind of deal.

Okay, But How Do I Buy My New Ferrari?
This article probably isn’t the first time that you’ve heard property investments can make you rich. It’s true, they can, but you have to invest in the right property, making the proper deals on the market. The easiest and most effective way would be property flipping. If you’re flipping property, you’ll buy it at a low price on the market, usually due to aesthetic issues. You can then fix it up improving curb appeal and sell it on the market for a lot more than the original price. To do this, you can either complete DIY repairs and changes. Or, you can hire the services of an expert design and building team. It’s entirely up to you which route you choose, and it will typically depend on the level of skill you have in this area.

The key is to keep your costs under control while doing everything you can to boost the value of the property. Remember, actual value doesn’t matter as much as the cost that buyers are willing to pay. That’s why imitation materials are a great option. You can get materials that are imitations of marble for the kitchen. These are budget friendly but look the real deal and as such will get buyers reaching for their check books.

What’s The Worst That Could Happen?
The absolute worst case scenario is that you invest in property when there is a housing market crash. If this happens, you could get stuck with a property that won’t sell for years. However, it’s a fallacy to say that houses don’t sell during a crash. They do, they just sell for prices far lower than they are worth. If you can afford to handle the costs, you might want to keep hold of the property because the market will improve eventually. Alternatively, cut your losses and slash the price. You’ll be able to get out before that dream investment becomes a crushing debt. Do bear in mind this is the absolute worst case scenario, and most investors will never experience

So are you ready to roll the dice and try your future on the life-size monopoly board?

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Milo Senalle

Milo Senalle

Managing Editor at Chispa Magazine
As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.

Milo Senalle

As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.