Considering the amount of money to be invested in Real Estate is a prime consideration if you want to engage in this kind of business. You must first learn the basics of Real Estate in its real meaning. Once you have gained some knowledge about how to deal with its pros and cons, then you can try with your first (1st) venture in Real Estate Investment.
Think about this premise: “Property values are more stable and relatively safer than stocks and bonds. Its value tends to increase in the long run”
Strategies in Wise Property Investment
Know Your Financial Capability
Real Estate investment involves a big amount of money as your capital and comes with a high price. You need to divide your money into certain allocations. You must have the capability to pay for property purchases, transfer taxes, permit application fees, Design & Construction and other miscellaneous expenses that come with investing in a property.
Set Your Investment Strategy
Whether you’re going big or just taking small steps, you must set a realistic budget for your Real Estate Investment. Be sure that you still have enough money left once you start investing in properties.
Do Your Property Market Research
You don’t want to waste your hard-earned income by going in blind. Study your target market to know if it’s worth investing in. Consider its location and the standard of living of the people in the area. Such knowledge will help you see the Real Estate market trends in the area.
Choose Your Property Investment
There are different types of properties you could choose from like house-and-lots, condominiums and rentals. But for your first time, it would be best to invest in your own home.
A condominium can be more appealing because of its lower cost, prime location and amenities. But a house gives you larger flexible spaces, exclusive land ownership, and optimal privacy that a condo unit can’t provide. Plus, a house purchase makes for a great long-term investment because the Real Estate value of the lot it’s built on increases over time.
Buying a house is also better than renting because it’s more economical in the long run. Paying rent is basically paying your landlord’s mortgage. And it’s not practical to do that for too many years. Especially for true parents, a home is rewarding investment that they can pass on their children in the future.
References:
Get Started in Real Estate Four Properties Perfect for the First Time Investors
Is Buying a House a Good Investment