Millennials’ interest in investing in property is increasing. One of them is rentvesting, namely buying property for rent. Reporting from CNBC, according to US and UK census data, more than a quarter of millennials are engaged in property in these two countries.
Quoting CNBC, Thursday (2/12/2019), here are 4 ways to start a property business for beginners or millennials in 2020:
1. Calculate Down Payment When Credit
For those of you who have small capital, of course, credit is a solution to start a property loan that will be rented out. If you take credit, make sure to take a large down payment, at least 20 percent, so that the installments become lighter.
Ideally, the rental income should be able to help cover the installments, so that when the loan is finished you can enjoy the profit.
But, if not, you have to make sure that you will be able to cover the shortfall with your own income.
2. Choose your location wisely
Playing in the property rental business, location will determine the success of your business. A good location will be more attractive to tenants.
Choose a strategic place is an area that is crowded with middle class residents. In general, areas with connections to the city’s central business district and campus tend to be good places.
3. Find out what type of property you like
Not all property rental models will be liked by people. For example, if you don’t want to bother with and spend more for the rental business, then the apartment and boarding house rental model will be more suitable because there is no need for large renovation costs. good choice for you.
4. Have Emergency Fees.
Even though your rental property investment will continue to make you money each month, you should also prepare for emergency expenses for major home repairs.
Such an unexpected flood could make your property damaged and need repairs as soon as possible or annual taxes to be paid.