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Preparing For Economy Changes |
Written by Melanie C
Tuesday, 24 June 2008
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The most important step an investor in real estate can take to protect from economic changes is to buy well in the first place. If you buy to rent, then buying a decent property in a good location is imperative. It needs to be close to retail outlets, schools and other amenities. There are three broad types of renters, young without children, couples with children and seniors. To exclude any of these groups is to reduce your rental population. No close schools or public transport exclude renters with children. But buying well also includes paying the right price. A fixed interest loan is not always the best answer to rising interest rates. Instead, consider refinancing to create a buffer zone for emergencies. This can be done without costing much and gives you peace of mind. You could also create more equity in your property with some quick renovations, then ask the bank to re-value it. You can then borrow against the equity to pay your loan, if things get tough. When renting property, the main worry is having the property vacant for some time and losing that rental income. To avoid this, offer your tenant another 12-month lease once the first one is up, rather than going with the usual monthly lease. Keeping your personal finances in order is also necessary, so you don't go and spend money that should be kept for emergencies. Article Source: http://www.ArticleBlast.com |
About The Author:
Visit QuickDirect (http://www.quickdirect.com.au) for more information on fixed rate home loan and find out how much you can save with a refinance calculator.
Visit QuickDirect (http://www.quickdirect.com.au) for more information on fixed rate home loan and find out how much you can save with a refinance calculator.
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