Investment property is a great way to earn large amounts of money over a short period of time since it is a secure investment and it is unlikely for the value to drop. It is an investment that has practical use as you plan to sell it by giving you a holiday home, somewhere to live or generally a property. Town houses are ideal investment properties since there is always a high demand for them. This is due to their practical locations and easily accessible amenities and industries. However, not all town houses are the same and while it is an ideal way to make money there, are things that can assist you to make the investment even more profitable and successful.
One way of doing this is by carefully selecting an area that is on demand and has good value but, more importantly, somewhere whose value is increasing with time. The location needs to be worth more in future than it is currently to ensure that you make money out of it. The higher the demand and value; the more money you are likely to make in future.
You can identify such areas by looking for those that have been marked for development or new installation like social amenities or tourist attractions. Invest in a property that you can develop meaning that you do not want a place that is in perfect state but one that has enough room for improvements. This is a way of raising the resell value past the amount of money that you had to pay for it. For instance, you can redecorate the rooms, landscape the garden, retile the bathroom or plaster the walls all over again.
The value of the town house property will increase at such a level that you will be in a position to earn back more from the developments.
You can make use of the town house while you wait to sell it by either renting it out or leasing it as a holiday home. Either way, you will be able to make some money during the interim period and make much more when you sell it.
When it comes to selling, you need to be smart and know what you are doing. This means that you should set a good asking price, make the property presentable, use a good estate agent etc. You need to find a trustworthy property manager if you need someone to look after the property on your behalf. A good manager will arrange repairs, schedule periodic property inspections, communicate regularly and if there are tenants, deposit the rent to your bank account.
There are other duties that a property manager may be required to carry out and you should interview those in the potential area to find the right one. Find out how many other properties they manage and how established they are in the industry. There may be other factors that you need to consider depending on different scenarios, but with proper research, you will greatly reduce the chances of making a poor investment.