Investment property for sale can be an exciting and rewarding undertaking, if and only if, you make the right choice. Real estate is a tough business and the field comes with multiple roadblocks that can hamper your returns which is why it is important to perform detailed research before investing in any property. For a first-time investor, the process can be rather daunting – keep these top five tips in mind when looking at investment property for sale in Washington DC.
- Neighborhood
The neighborhood that you buy your property in determines the types of tenants that you can attract as well as your vacancy rate. If your property is near a university, there’s an increased likelihood that students will be your main tenants, which means that you can struggle to fill vacancies over the summer. Be on the lookout for towns that discourage rental conversions by imposing high permit fees.
- Property tax
Property tax varies across your target area, and you need to be aware of how much you will be losing, should you purchase a house in that area. The assessment office of the municipal will have all the tax information you need, while you can also talk to local homeowners in the community. Be sure to find out whether the property taxes are likely to increase soon.
- Job market
Locations with a larger number of employment opportunities attract more tenants. Check with the US Bureau of Labor Statistics or a local library to find out how a specific area is for job availability. If you see any announcements about major companies moving to an area, you can be sure that workers in search of a residential area will move there. This can cause housing prices to go up or down depending on the business involved.
- Average rent
Rental income is likely to bring you a good return on your property, so you need to know the area’s average rent. Make sure that any property you consider can give you sufficient rent to cover your taxes, mortgage payments, and other expenses. Research the area well to understand where it might be heading in the next five years.
- Future development
The municipal planning department will have sufficient information on the developments or plans for a particular area. If there’s a lot of construction, it is probably a good growth area, so be on the lookout for newer developments that could hurt the price of surrounding properties. Additional new housing can also compete with your property.
Thedcteam.com can help you find investment property for sale in Washington DC with ease. With over 25 years of experience, their team ensures that the house of your dreams is within reach! They can also assist you with selling off properties with their extensive marketing and staging knowledge. Get in touch with them right away for all your real estate needs.
