Whether you’re looking to boost your wealth to retire early or retire comfortably, there aren’t many better options than real estate. It’s accessible, thanks to mortgages, and it’s easier to understand due to the fact most investors have been through the process before.
Still, with your future on the line, it’s tempting to fall into traps. For instance, you might believe that long-distance property investments aren’t wise or feasible. After all, you aren’t on-site, and you can’t step in when something goes wrong.
While these are points worth considering, you should also factor in the features that could make the project successful.
The main issue is finding a steady stream of renters to cover the home loan repayments. Not only do you need an extensive list, but you want to vet them too. Thankfully, the internet is one hand to prevent any poor decisions. Firstly, it’s not hard to market a property, even if you live thousands of miles away. All you need is a realtor site that understands SEO and the power of video and imagery content. For vetting purposes, you can run a remote background check by looking into their credit rating and speaking to previous landlords. Plus, video-calling software such as Zoom and Microsoft Teams lets you interview applicants virtually!
Sure, you won’t be able to react to problems, and there are always issues for landlords. Thankfully, it isn’t necessarily your responsibility. If you pay somebody else to take on the job, they have to liaise with tenants as the first port of contact. They’re called property managers, and The Balance SMB explains what they do in more detail. The key is to offset the expense against the investment opportunity. Long-distance property is often cheaper as the market is less competitive, for example, which means you’ll have a bigger budget for management purposes.
Imagine this scene. You’ve found a perfect property and plan on making an offer, only to realize it’s unfurnished. What do you do?! Previously, little issues like that have stopped buyers from investing as they didn’t want the hassle involved with purchasing and installing appliances. Today, moving companies such as North American Van Lines and Co specialize in out of state services and solutions. Therefore, if you want to furnish a house, all you need to do is pay for a mover.
The above is based on best-case scenarios, yet as any investor understands, the worst-case ones often pop-up. You’ve got to be prepared, which is challenging when you live hundreds, if not thousands of miles away. However, it’s not impossible, not when you pick the most suitable insurance policy for your requirements. Getting your finances in order as an investor means taking out landlord cover, as well as liability cover, to protect you if you suffer from damage or loss of earnings. With an insurer behind you, it’s easier to sleep at night knowing you’re not vulnerable.
Now you know long distance property investment isn’t bad, will you be tempted?