Investments come with their own risks and challenges. Deciding to buy income property in Georgia might seem more daunting than other investment opportunities, though.
Income property is (typically) a property to rent out to either an individual or a business. This gives you a second stream of income, making income property a tantalizing opportunity for Georgia residents looking to expand their portfolio. There are some questions to ask before you buy, however.
Ask questions about the neighborhood
Neighborhoods can impact the overall value of your rental property and steer potential renters away. For example, neighborhoods near college towns tend to be very lucrative for income property owners as the area is normally pretty safe and there are always people looking for apartments.
If the neighborhood doesn’t have a lot of amenities or attractions, there’s little incentive for a tenant to rent that property – even if they’re getting a good deal on it. For this reason, you’ll want to look at neighborhoods with a lot going for them.
Be mindful of taxes
Property taxes can be the heftiest costs of renting a property. Different cities have different rules about how properties are taxed, but commercial real estate properties tend to be taxed at a higher rate.
Sometimes the taxes are worth it if the neighborhood is nice and you know you can rent the property for more than it’s worth. But if the average rent for other properties is the same or less than what you would have to pay in property taxes, it’s probably not worth your time.
Other things to consider
Things like schools, crime rates, and the local job market can all influence a tenant’s decision to rent. So these should also influence your decision to buy the income property.
Ideally, your investment property will have a lot of promise and will rent out pretty quickly. Take the time to research and ask any possible questions you may have before buying.