3 things you need to know about before you start playing monopoly in real life

3 things you need to know about before you start playing monopoly in real life

Have you ever wanted to change your life and start playing monopoly in real life? You have to admit it is a fun game, but in reality, real life monopoly can be challenging. There are a lot of things you need to take into consideration when you purchase your own investment property and rent it out to other people. Here are three things to know before you buy an investment property and start renting it out.

The first thing you might want to consider is interest rates. They are higher than if you live in the house, so if you are buying an investment property, you need to factor in those interest rates and make sure you count them when you do your analysis.

The second thing you need to consider is the location strategy if you are planning to invest in your first property. Research the relative demand for properties in various locations. If you choose wisely, then your property will be more likely to attract renters even if the economy takes a downturn. Consider the ease of interstate access, jobs, schools, and medical access. 

The third thing you need to consider when buying an investment property is utility bills. You may be thinking your renter will shoulder the utility bills but not always. Especially, if you only have one electricity meter and one water meter to the property but will have multiple tenants. This happens more often than you might think, are you in an area where you are renting to college kids? It could be a house but have three separate tenants. So if you're looking for a property to invest in consider if it has a separate utility per unit or if they all combined? Because those factors can change your numbers, you’ll need to make sure they're included.

If you want to know more about investing in your first property and the BONUS TIP, watch the video link above!

If you have any questions about getting your first investment property,  get in touch with us. We'd be glad to help!