It almost goes without saying that there needs to be tenant demand, however this information is often hard to come by. Do your research on the local demographic; are we looking at a large student population, young professionals or families?
(PRWEB UK) 27 February 2012
Atlanta is one of the fasted growing metropolitan centres in the US. It was also recently voted the fourth best city to invest in by CNN Money and the number one rental market by Forbes. According to http://www.colordarcy.com this is good news for investors with the cash to buy property at heavily discounted prices.
1. Atlanta Is A Big City
In large cities, there are more margins for error. There are good areas and not so good areas, therefore the most important thing to consider before purchasing property in Atlanta is which part of the city to invest in and the kinds of people who are likely to be tenants in that area and their neighbours.
It is also worth considering the time it takes to commute. People will want to travel to their college or place of work as fast as possible.
2. Deciding On An Investment Strategy
Atlanta is a long-term play with the goal of receiving positive cash-flow for the lifetime of an investment. Short-term investment in this market will be high risk unless the investor really knows their stuff and buys property at substantial discounts.
In this market it is important that expectations are realistic, and ignore the inevitable hype.
3. Choosing An Area With Good Economic Prospects
To get a feel for a city like at Atlanta, property investors need to do the leg-work and have a look around. Does the area have an abundance of shops, restaurants nightclubs, sports stadiums and more importantly offices nearby?
Is it close to major routes into the city centre, but not too close. If it isn’t then it is worth thinking carefully about the reasons for investing.
4. Researching The Local Demographic
Loxley McKenzie Managing Director of http://www.colordarcy.com said, “It almost goes without saying that there needs to be tenant demand, however this information is often hard to come by. Do your research on the local demographic; are we looking at a large student population, young professionals or families?
Either way it is well worth the effort researching the locality and even enquiring about average rentals in the area of town you want to invest in.”
5. Finding Properties That Will Pay For Themselves
The number one rule for any investor in property in Atlanta or anywhere else in the world is to invest in property that will pay for itself. This just makes things easier and less of a gamble.
If the idea is to have a property regularly rented in Atlanta then investors need to make sure it is close to colleges, universities and business centres. It will then stand a much greater chance of earning the rental income that will cover ownership expenses.
6. Getting To Know The Rental Market
To achieve the above, investors will need to be satisfied that the property they are buying isn’t in an area already or soon to be saturated with similar rental properties.
This can turn into a nightmare for the unwary who may be forced to reduce rents in the future through lack of demand.
Try and look for areas where demand is increasing and tenant demand is high. Put in some research work to find the best areas or work with a property consultancy that knows the dynamics of the market.
7. Finding Expert Is Important, It Will Be Worth It
Property prices may be cheap in Atlanta, however - investing in property can be an expensive business which is why it is useful for people who are new to this market to have someone looking out for their interests and helping with due diligence.
In most cases, a property consultancy can provide guidance through the process and on any negotiations. This will save a lot of time and hassle unless investors really know what they are doing in this market.
It is also recommend that an Atlanta property lawyer is appointed to review the purchasing agreements and title deeds.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Atlanta, Brazil, Florida, Turkey and the United Kingdom.
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