Are you thinking about getting into real estate investing? If you are then you’re not alone as one survey showed 31% of Americans still think that property investment is the best way to create a nest egg.
But for those who want to begin dipping their toes into the vast waters of real estate investment there can be some hesitance. This is totally understandable as buying property isn’t the same as choosing a bed or furniture. It can have long-term ramifications, especially if you get it wrong.
So how can you make sure that you get it right the first time?
Read on to see how you can get the most value out of becoming a property investor.
The property investment game is best played when your objectives are to have a steady passive income or to make money overall.
However, if you get into real estate investment but still have outstanding debts the addition of a property can become an additional noose around your neck that can have the opposite effect.
In the beginning, it costs money to get into real estate. So alleviate stress by trying to remove all outstanding debts ASAP.
This may put the breaks on your journey, but the fewer financial commitments you have, the easier it will be to handle the unexpected additional costs, allowing you to get the best value from your property investment.
Choose a Strategy
Did you know that there are different ways of getting into real estate?
Remember, what may work for one person may not work for another. Therefore the sense of value gained from property investment can be lost if you realize that you are in the wrong game.
The two main ways of getting started in real estate are either through buying and holding and flipping.
While constantly looking for the best real estate opportunities and flipping can be an expensive strategy, if you have construction knowledge it can be an easy way to generate profit. Many flippers also choose this method because it avoids having to deal with disruptive tenants and the day-to-day management of a real estate property.
On the other hand, if you have the time to deal with managing your property investment and prefer a more stable form of income, then buying to rent is for you. You can always choose to offload this onto a property management company but that will eat away at your profit, so keep this in mind.
There is a reason that its location, location, location.
At times the condition and standard of the apartment or house are secondary. Location is what pumps up the price, hence the stories we’re familiar with about box apartments in inner cities being sold for astronomical amounts of money.
So those starting on their property investment journey, what makes a location great?
Firstly be familiar with the areas in the city or town where people want to be. For this reason, it is always advisable for those beginning to look at property investment to focus on where they are. Nothing can beat the boots-on-the-ground knowledge that you pick up when you know your surroundings well.
Are there good transport links or is it easy to get into town? If you are looking more towards the suburbs? What are the amenities like? Is it a safe area?
Once these questions help you to isolate a few areas. Then it’s useful to pay attention to market reports over the last few years. An area may be experiencing a property boom right now. But steady price growth is the best indication that your property investment will continue to hold its value.
Start Your Property Investment Journey Right
By taking property investment one step at a time. Your chances of reaching your final destination of financial independence can be realized.
We hope you enjoyed our breakdown of the keys to getting value from your property investment. If you did check out our other great real estate posts.