When buying an investment property, you must be certain that you can afford to buy and hold the investment over the long-term.
Whether you buy property, a rental unit, or a business, there are costs and risks involved in disposal and acquisition. Unless you have the cash flow to support it, you may actually cost yourself money.
Do you plan to make a profit on a quick sale, or do you want a greater sale after it‘s had a few years to increase in value? Each one comes with its own unique set of challenges, costs, and risks.
For example, what if you wanted to buy a property as a long-term investment? You need to know what the long-term development potential of that location (and other nearby properties) is. While you may have found some cheap land to buy and hold on to, are you prepared to and able to foot the bill for its maintenance costs in the meantime? Are you comfortable with the potential risks involved if the development potential never pans out?
Before you proceed with a property investment, seek out the advice of an independent professional. If you don’t know anyone, we’re happy to put you in touch with independent experts in finance and accounting. Contact us today, and we can get you started.