An individual who is purchasing rental property for the purposes of income has a long road ahead of him, and he should be involved every step of the way to ensure that his investment turns out in the end.

The first step in figuring out if you’re ready to own investment property is to ask yourself how much money you have to pay up front. Buying your own home can require costly down payments, but investment properties generally require that plus much more. You may very well have to come up with not only the down payment on the property, but also the cash needed to bring the place up to code and rental standards. There are different standards for a rental property than for a private home. Unless the place you purchase has been a rental before, expect to be shelling out quite a bit of cash upfront.

Keep in mind, there are loans available for those buying rental properties. But rates and terms for investment real estate loans are harsher than those for private homes, since lenders believe there is not as much emotional investment for the borrower, and so their loan is more at risk. Explore your options and check into a few different lenders, trying to get the best loan rates you can. It may not be easy, but if you are not planning to back down from the task, you will not be wasting your time.

Once you manage to get your property renovated and you’re ready to go, you’ll face the issue of finding good tenants through the screening process. You can certainly hire a property manager to help you out here, as well as to deal with repairs that come up later, but most small landlords are much better off doing this process themselves. Screen tenants carefully and don’t let emotional involvement get in the way. Set some standards regarding credit reports and income, and stick to them regardless of who walks in your door.

Don’t expect to make a profit at first. Your rate of return is going to be small, even if you have done the math and figured out your rent cost as carefully as possible. Also prepare yourself for unexpected repairs which are going to bring down your profit margin and require some work on your part. The first three years of a rental property are, typically, the shakiest. If you’re committed to being a landlord, you’re not afraid to roll up your sleeves, and if you’re planning to stick with it, you can reasonably expect a decent profit at some point in the future.

A recent survey by a well known mortgage lender in the UK revealed that up to one in three Britons not only dream about owning a home in the sun but fully intend to make that dream a reality some day. And in the US the number of Americans planning to one day buy that ideal second home haven is now up to three in ten people.

Now let me ask you another question: If it is your dream to ‘one day’ own that beautiful home in the sun what exactly are you waiting for? Why wait for ‘one day’ when you can make your dream a reality today? Here are just five simple ways that could free you up to make your ideal property purchase today.

1) Location, Location, Location

There are still some very beautiful and highly affordable locations left in this wonderful world of ours – destinations that are less well known, less popular with tourists, less well developed maybe; but no less beautiful, no less welcoming and certainly no less safe!

You just have to look a little further afield or think outside of the box and be prepared to do some of the real estate research yourself. The most popular destinations for second homes like Florida and Spain are very well documented and there are literally thousands of real estate agents to help you find that pricey holiday villa or apartment.

But if you want to be able to buy up something that doesn’t have such an inflated and unachievable price tag then look to less well marketed and tourist populated areas – find the next emerging market.

Did you know that property in Northern Spain is a fraction of the price of property on the Costa del Sol, property in Northern Belize is a fraction of the price of property in the Cayes and property in central France is a fraction of the price of property on the Cote d’Azur for example? Did you know Croatia and Bulgaria have beautiful summer climates and stunning beaches?

Be a proactive pioneer and seek out the most affordable and desirable holiday home hotspots and make today’s budget go that much further.

2) Jet to Let

If you need to borrow to finance your property purchase consider buying an apartment, villa or house that can easily be rented out during the peak season in your dream destination. The weekly rental income you can generate from your property purchase will pay off the extra money you had to borrow to buy your dream home now rather than waiting until tomorrow.

Once the peak season is over and you’ve generated the highest rental yields possible you can free up the home for a couple of weeks and you can take time out to travel to it and enjoy an out of season break in your very own dream overseas home.

Once the holidaymakers who let your home have helped you pay off your mortgage you can either continue to take an income supplement from the property or refuse to rent it out and have it all to yourself – either way, jet to let is the latest way to afford that second home overseas.

3) Pool Resources

If you and your friends or family members all share the dream of owning a second home overseas you could consider pooling your financial resources together to get on the second home property ladder.

This will enable each of you to make your financial contribution go so much further – and if you draw up a contract between you all at the start which details who can have access to the house during which weeks of the year there will be no possibility of arguments later on!

4) Get a Fixer-Upper

Many first time buyers in the local market consider buying a home in need of repair, renovation or just a cosmetic overhaul. It’s a well known fact that homes in need of some TLC get sold far cheaper than perfectly presented show homes. Well, the same applies in every house market regardless of where in the world you’re looking to buy.

Therefore spend a little time learning about the local real estate market in your preferred country, find out about average costs of houses and then look for homes priced under this ceiling…all of them will be priced down because they require work.

Always make sure you get a survey done on any home you’re interested in to ensure you’re fully aware of the work required then get building quotes etc., and cost the work up – obviously the more work you can do yourself the less money it will cost – and then go get yourself a fixer-upper and use some of your holiday time turning your second home into your dream home.

You will be amazed at how well you can potentially push up the value of a second home by taking this path – in many countries overseas run down homes are undervalued because local people have no desire to take on the work. If you put in the effort and turn the house around, when you want to sell it you will probably be handsomely financially rewarded!

5) Release Equity

If you have equity in your principal home – i.e., your house is worth more than the mortgage you have on it – you could consider re-mortgaging to free up this equity and you could then use this equity for a second home purchase.

There are some major considerations to think about before taking this path however because it involves increasing your debt ratio. On the good side you can often reduce your overall mortgage interest rate when you re-mortgage and you will be putting the money you free up straight back into property.

On the bad side you will be increasing your debt and your loan will be secured on your primary residence. This option can suit many people but you should speak to a financial adviser before taking this path.

Hopefully these five simple ways have given you some food for thought – there are many ways to stop putting off until tomorrow that dream that you could be living today.

Why wait until you’re too old to enjoy a home overseas before you buy one!

Following the global real estate boom of the late 1980’s many investors learnt this hard lesson when they found their properties were worth far less than they had actually paid for them and the bottom seemingly fell out of the over-inflated market. The bottom did not truly fall out of the market however as all real estate retained value; the real estate market simply experienced an overdue rebalance and has gone on to build from this point of stability.

Since the booming 80’s ’sensible’ investments in real estate have still offered major attractions and advantages, and it is back to real estate that investors have turned in recent years.

With real estate prices in some countries soaring, and first time buyers struggling to get onto the first rung of the real estate ladder, many people are looking further a field for investment property opportunities.

A recent report in the UK highlighted a 130% rise in the value of farmland since the 1990’s for example – fuelled entirely by a new breed of non-farming buyers. With bricks and mortar real estate prices in the UK now so exorbitant, these non-farming buyers are looking for alternatives for their money.

They may be unable to afford real-estate investments and unwilling to risk their cash on the ever volatile stock market and so they are buying up fields and pastures to get in on the real estate investment game!

Others interested in property investment have been examining the real estate markets around the globe for value for money, return on investment, potential for growth and development, rental market opportunities and basic stability. With current research showing that up to one in eight Britons intend to purchase an overseas real estate within the next five years you can see that overseas real estate investment is very big business.

Relatively newly discovered property markets are opening up or expanding in countries such as North Cyprus, South Africa and Bulgaria for example – where potential buyers are afforded incredible value for money when it comes to real estate. The real estate market in countries such as these has been artificially restricted through the threat of war or political instability, and now with their recent history showing that they are stable countries with strong economies and populated and governed by those with a first world perspective, property investors are finding markets rich in diversity and potential.

Dubai is another country offering interesting real estate investment opportunities. Since May 2002 when the crown prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoom issued a decree allowing foreigners the right to buy freehold real estate there, the real estate market has exploded!

Properties available in Dubai range from modest one bedroom flats to freehold exclusive islands! And property there still offers very good value for money – furthermore the tax and business advantages in Dubai are very appealing and so real estate investment in Dubai is enjoying a buoyant upward trend.

And then there are the ‘old’ favourites – France, Florida and Spain for example are all countries with a long history of investment real estate appeal – especially for Britons and Northern European residents looking to escape the weather and invest in a home in the sun. Whether you are looking to secure a home for holidays, your retirement or you are looking for a long term investment opportunity these countries still offer the investor potential for real estate growth.

When it comes to considering real estate as an investment vehicle it is a tried and tested method used for attempting to secure long term gains – but as with any investment, gains, returns and security of investment are not guaranteed. Whether real estate investment is right for you and matches your circumstances and attitude to risk is something that you need to consider.

Homebuyers considering buying a home at auction should take some steps in advance to help them with their bid price, and even whether to bid at all on a specific home. There will always be a degree of risk when buying a home this way, but with a little diligence, potential homebuyers could save a lot of money buying in this manner.

Before the auction, you should have your financing arranged, and have enough cash on hand or in your bank account to cover a deposit on your purchase. You need to check the features, location, condition, and ownership history first. Afterwards, be sure to learn what the property is worth by looking at sales of comparable properties in the same area. Compare homes with the same number of rooms is possible, but be sure to allow for price differences due to pools, decks, carpeting, window treatments, etc.

At the auction itself, resist the temptation to get into a personal bidding war, just “to beat out the other guy”. Have a set price limit and stick to it. Other houses will come along, and you don’t have to win the first auction that comes your way.

You should know that the price of a home at auction is typically the loan balance (if foreclosed), plus any back taxes owed, plus legal fees and other expenses in foreclosing the property. This will typically be the opening bid amount, and the price will go up from there. Even so, it’s possible to get a great deal in an auctioned house, with a little research and planning first.

Also, know that you probably won’t be able to get an inspection, and are buying the home “as is”. If you can’t do any needed repair work yourself, or can’t hire it done within your budget, you may not end up getting such a bargain in the end.

First of all, swimming pools are not worth much. Not in resale value, anyhow, even if you did pay a lot to have one installed. There was a time when having a pool in the backyard meant a lush and expensive home, but nowadays they are more common than you might think. Many modern home buyers are more interested in a backyard for the kids than they are in having a tiled pool outside their back door. Speaking of the kids, that’s another reason the resale value of homes with pools has gone down: With the ever-growing number of Americans with small children, many would just as soon steer clear of a large body of water in the yard. This is not to say that swimming pools do not have good resale value to the right buyer. It does mean, however, that there are fewer “right buyers” for this type of property than there once were.

The second surprise is an easy one: You can never have too many bathrooms. Nowadays bathrooms are prime space in a home. Even installing a shower and toilet in a corner of the basement can add remodeling potential to your home. Ideally, every house would have a main floor bathroom, a guest bathroom, and a bathroom off of the master bedroom. In short, the more toilets and showers for today’s family, the better your home will fare in the market of the future.

The third and final surprise source of value is this: If your home is the smallest in the neighborhood, it might be the best in terms of resale value. A small, modern, nicely kept home in a neighborhood of larger houses may fare very well. Picture it this way: Your neighborhood is desirable, and you’re lucky enough to have the most affordable house on the block. Compared to the prices of the property around you, what might seem like a high price for the size of your home can be considered a very good deal.

Calculating resale value for a home that you plan to sell in the future can be a tricky job. It’s sometimes difficult to predict what will come and go in the buying market. The best advice is to keep the basics updated and in good shape- this means your kitchen, your roof, your yard, and other obvious hubs of the household. When the time comes to sell your home, be prepared to spend a little money to invest in one or two areas that can increase your home’s value considerably. It will be worth it.

To anyone paying close attention, this already sounds like a scam.

But even if the home owner misses these first warning signs, he discovers it’s a scam a few days later. That is, after he’s paid up, and the contractor has disappeared without doing the work, or announced that it will cost twice as much as he thought and he needs more money before he can continue.

Home repair scams are fairly common, experts say, and new homeowners and the elderly are particularly susceptible. It might seem shocking that anyone would hand money to a person off the street with no guarantees, but many inexperienced owners are panicked at the thought of home repair, and they will trust anyone in a tool belt who tells them there’s a problem. No questions asked- unfortunately.

What is the simplest way to tell the difference between a legitimate home contractor and a scam artist? The main rule is, if they come looking for you, consider them suspect. Legitimate contractors are busy- running a real business- and they don’t go knocking on doors for jobs, not even if your roof IS dangerously close to serious damage. If someone is knocking on doors and soliciting jobs, chances are they have more than enough time on their hands to do so, because they’re not actually doing any of the jobs.

Of course, that doesn’t mean just because you look a contractor up in the phone book, you’re perfectly safe. Do your research. You’re investing a lot into choosing your contractor, including your money, your time, and your home. Don’t assume that just because a contractor holds a license that they’re a good one, either. Becoming a licensed contractor is hardly more than a matter of paperwork, and scam artists can become licensed just as easily as anyone else. The best way to find a good contract worker is by asking for recommendations from neighbors, coworkers, or friends who have had good work done. Ask them if they would hire the person again and what kinds of problems they might have encountered. Check with the Better Business Bureau and any local business registry offices. Ensure that the contractor is indeed registered as a business, and look into any feedback they may have received from previous customers.

Home repair can be a scary and expensive process. When you’re faced with needed repairs, make sure you’ve got a professional on your side. It costs nothing to be careful, and it could save you a great deal.

The first factor in pricing your home is, naturally enough, your home itself. The desirability of the property will be the deciding factor in what price to set. It’s an excellent idea to get a home inspector on the premises to check out all aspects of the house, including the roof, electrical systems, and plumbing. Get a clean bill of health for your house if possible, and seriously consider making any needed repairs. Buyers today want model-home houses. In fact, many buyers will not move in to a property if there is even a small amount of work that needs to be done. In a seller’s market, you may be able to get away with selling a house that needs small improvements, but it will lower your list price.

Call in local agents to help estimate the true market value of your home. It’s best to get more than one opinion on this matter. Talk to appraisers and agents who work in your area and are familiar with the neighborhood, as they will be able to factor in the prices of surrounding properties, as well as the desirability of the area. However, don’t spend money on getting a formal market appraisal. Local real estate agents will have a better idea of the area and be able to price your house according to current market trends. Don’t be afraid to point out certain features or traits of your home that may justify pricing it slightly higher. For example, if you have a bay window, or a carpeted basement that provides more potential living space, you have a slight edge over similar houses, and those factors should be taken into account. A good realtor will be able to take all of these factors into account when setting your list price.

Once you have settled on a fair price for your property, it’s time to set your actual price tag. It’s expected that most sellers will initially price their home at about 15 percent above its actual market value. The selling process will involve bargaining, and depending on the condition of the home, any possible repairs, and the amount of potential buyers, the amount it sells for will more than likely be less than the price for which you have it listed. So aim a little high and be prepared to receive various offers on your home based off your initial price. If you’ve done your appraising and calculated correctly, when the final paperwork is signed you should be receiving an amount very close to your home’s actual worth.

Someone living in a rental property, whether it’s a home or an apartment, can reasonably expect their landlord to take care of repairs in a timely fashion. If they don’t, per laws in place in every state, the tenant has the right to vacate the property. The cost of property repairs falls strictly on the landlord, not the tenant, provided the repairs were not brought about by any act of negligence or otherwise on the tenant’s part. So goes the rule of rental: You pay your rent, and you keep things in good shape, and if they break, it’s not your job to fix them.

This is a convenience that is hard to ignore. Having someone mow your lawn, take care of your furnace, and patch your roof… well, it saves money. And work. But even with the massive costs and inconvenience that can come from owning a home, it remains an indispensable fact of life for most Americans. They want somewhere to call their own. Even a leaky, expensive roof that you have to pay for is better than not owning a roof at all.

In spite of the costs involved, the repairs, the down payments, and the mortgages that can last for years, this longing for ownership makes a great deal of financial sense. A homeowner in today’s market has far more pull than those whose biggest financial asset is their car. Owning a home gives you property value, something to borrow against, and something to leave to your children for the future. As prices of real estate skyrocket across the country, and show no signs of slowing, even a modest bungalow in a small town is an investment that you can be relatively at peace with making. After all, human beings are always going to need a roof over their heads; ideally, one they can call their own

Of course, plenty of homes are sold through private showings, scheduled only between the home owner, the realtor, and the buyer. But the publicity of a well-advertised open house can bring in a larger sphere of interested people who might not have been exposed to the property otherwise.

Many people in the market to buy a home can’t leave work or family to go house-hunting during the week; it can be difficult to find a time that works for both the buyer and the owner. Open houses make this simple. They are usually held on weekends, and all parties have plenty of advance notice. Not to mention the fact that a buyer at a well-prepared open house sees a much more pleasing display than one who is led through the house at 9:30 on a Monday morning.

However, all of this can come at a price. The number one concern among home sellers regarding open houses is security, for their possessions as well as their property. A seller who is already packing up to move might be very amenable to the idea of an open walkthrough, but one who is still living in the home would have quite a lot of preparation ahead. Things can, and do, get broken or stolen at open houses. It takes a great deal of time to organize a household’s worth of belongings in such a way that several strangers poking through the house at once, trying to see how big the closets are, will not disturb them.

There is another security factor. Home owners are often just plain bothered by the idea of people seeing what they own and getting a chance to essentially case the joint. This is another reason why, if the owner is unable to store their property elsewhere during the open house, it may not be worth the risk.

Those who feel that an open house would be a good move in their market simply need to act smart. Request the help of your realtor, friends, and family, and pack away belongings. Provide adequate supervision in every room during the open house. If you would rather organize the open house into a series of guided tours, with one starting every fifteen minutes, this is a possibility (although you might lose one or two buyers who would prefer to wander free).

Basically, if your house doesn’t have a lot of curb appeal and is short on offers, it might be worth your time to let potential buyers get a free peek inside. It can be a secure and helpful step in the selling process, provided you take the time to prepare for it.

The first thing you should do is the first thing potential buyers will see. Paint your front door. Even if the door is in good shape, it’s worthwhile to add a splash of color to make your home stand out- both on the street and in the buyer’s memories. A great shade of barn red or forest green will add some interest and draw the eye towards the door, which is, after all, the center of your home. Make sure to choose a warm, inviting color, and paint neatly, wiping up any spills. A gallon of good outdoor paint is cheap, and the effect will be worth it.

Wash your windows. So many sellers don’t think of this one, but it can possibly make the biggest impact out of anything you will do to prepare your home for the market. Everyone loves natural light, and the build-up on windows occurs so gradually that most people don’t even realize they are losing much of the light they could be getting. Getting them clean can be a bit of a pain if you have a house with multiple stories, but trust us, it’s worth it. Call a professional if necessary. Just get the windows clean, inside and out, and remove and wash any curtains or blinds. If you haven’t done this in awhile, you might feel as though you’ve knocked out a wall when you see the amount of light that comes pouring in. And potential buyers will see it too.

Finally (and this one is easy), put up some house numbers. This is a tiny trick that helps stamp your house into the buyers’ minds, and creates a lasting impression. Go to the hardware store, and buy some brass or iron numbers that match your house’s decor. Attach them to the porch, the front door, or wherever seems appropriate. Just make sure they’re bright, tasteful, and noticeable. Potential buyers will see the numbers and imagine it as their address, which opens the door to them feeling at home in your house. Making your house numbers noticeable will, at the very least, keep your property from fading into a generic list of houses that the buyers might have seen already.

Of course, property value is determined by much larger factors than we’ve discussed here. But if you’re hovering on the edge of receiving a certain price, a few extra steps to help nudge you up further can’t hurt. And might just pay off.