The Do’s and Don’ts of Buying Investment Property on the Jersey Shore!
by Shawn Clayton
on Wednesday, March 30th, 2016 at 11:46am.
The purchase of property for the purpose of renting it out as an investment brings with it a number of added complications, beyond the regular purchase of Jersey Shore real estate. To help those savvy investors out there become even savvier, we’ve put together a number of Do’s and Don’ts to help you navigate the treacherous waters of investment property ownership.
Get your personal finances in order by taking a clear stock of your current debt and repayment schedule, as well any large expenses that may be coming up soon. You have to be sure it’s the right time for you to invest the time and money and that this is something you can truly afford - how essential is that oceanfront property?
It’s important not to forget your main end goals, keeping these at the forefront of your thought process. It can be helpful to write down exactly what you are looking for in an investment property – this way you can keep your goals as your top priority and keep your emotions out of the equation as much as possible.
Use a good amount of common sense when you look at a property. You need to be sure to use a critical eye when viewing each property; great investments at unbelievable prices do come along, but more often than not, there is a reason the price is so low. A sound investment at a fair price may be boring, but it could be the more prudent and reliable investment in the long run.
Don’t rush to close a deal; make sure you do your homework thoroughly. Unfortunately if a deal sounds too good to be true it often is. There is no substitute for due diligence – this will likely include a mix of research in person at the property itself, as well as researching the area and similar nearby properties from the comfort of home.
Do your homework so you have a good idea of exactly what you’re getting in to. Make sure to study the local neighborhoods and compare rental prices on comparable properties. Plus, what else will likely affect your baseline? Will you be hiring a property management company? What are the property or special taxes like? Are there any other tenant/strata fees you need to be aware of?
If an investment property checks out after you’ve thoroughly done your research, then don’t be afraid to pull the trigger and take the plunge. Too often, investors get nervous when it comes time to invest the actual money necessary. Great opportunities don’t come up every day, so if a great one checks out, don’t let your trepidation prevent you from a solid, money-making opportunity.
Keep on top of everything! The responsibilities of an investment don’t stop as soon as the initial investment is made. It’s imperative that you keep on top of all payments and property maintenance. Also, keep an eye on your cash flow and file the proper tax returns each year.
It’s hard to overestimate the value of a quality tenant. If you can find a great, long-term tenant that pays their rent on time each month and takes care of your property, it will end of saving you lots of money in the long run. An empty unit won’t make you any money, plus the costs finding a new tenant and refreshing your property can be substantial.
The New Jersey Shore is a popular summertime seaside vacation destination, with plenty of sun and sand for all to enjoy! If you'd like to learn more about buying investment property along the Jersey Shore, please contact Shawn Clayton online or call 732-295-2222 to consult an experienced Jersey Shore real estate expert.