The Potential of Investment Property

Investment properties can be excellent ways of making and investing money when chosen correctly. However, there are many pitfalls.

Like anything else, being as educated as possible regarding what to look for is critical. If you are thinking about looking into property investments, you should be aware of certain negative qualities to avoid.

Flood Plains

All too often, excellent deals can materialise for property that looks amazing; the low asking price lures you in, and you only discover once the deal is sealed that it sits on a flood plain. As time progresses, you will be subject to the high cost of repairing flood damage to your investment property. In fact, any money you stood to make on it will likely go into repairing it.

Avoid properties near swampland or on an area that borders a river, pond or other questionable body of water.

Have A Thorough Inspection Conducted

Although you are sure to have your investment property appraised and looked over by a professional, you may not realise how important it is to have it checked out for pests as well. Nothing can put a damper on a seemingly lucrative investment opportunity like the presence of termites or other destructive, annoying pests. Before the deal goes through, have a reputable pest control company come out and closely examine the premises; otherwise, you may end up with an investment in pest control supplies rather than real estate.

Rising Damp

One of the most insidious potential problems that can occur in an investment property is known as "rising damp"; this is where the ground water that the house sits on rises up into the structure vertically. It compromises the structural integrity of the building and can lead to major repair bills down the road. Often, rising damp can be identified by simply trying to apply coats of paint to a home's walls. If rising damp is present, the paint won't seem to want to "stick." Plaster walls will feel spongy and will flake easily. Closely check out each room and avoid investment properties that exhibit signs of rising damp, or you will end up with much more than you bargained for.