The Housing bubble that burst recently has caused most of the property prices to drop drastically, investors who wanted to grab a piece of profit in the housing market must be careful when deciding to buy a property because it may not be as profitable as you think.
Comparing properties with shares, some investors prefer to invest in properties because of the physical existence of property make them felt more secure than shares.
As said "When Making the wrong investment in share might end up getting a worthless paper but in properties at least you can have a house".
In reality, properties also having the risk same as shares which investor must look upon to.
Guides when buying a property 1) Before you going to choose the dream house for your investment, remember that you must have the money to make the purchase.
By lending, you must not allocate more that 1/3 of your own income to the borrowings every month.
2) After you have determined the borrowings and the amount of cash you have to put in, have a search at your area first because this is the place you understand the most comparing with other people.
Remember that don't get caught of the "obvious prospects for physical growth in the property because it does not necessary translate into obvious profits for you".
3) Now after you have your properties, make sure it is below the market value before you make the purchase.
Remember that the higher you pay the lower the return will be.
4) You also must make sure that the area of your properties is 90% occupied.
Therefore it is easier to get a tenant for your properties.
You also don't wish to buy a property which the area is deserted and hard to find a tenant.
Remember to prepare yourself for the worst and pay all the expenses of your property if there is no tenant.