While the returns it generates can be fantastic, real estate can be a tricky business that one needs to do their research on before venturing into. If it’s your first time investing in real estate, here are some points to consider to make sure you get your money’s worth.
1) Set A Budget
Your first step before you even begin looking for properties, is to set a budget. What’s even more important is that you stick to that budget, when looking at homes. Selecting a property that’s close to where you live can also work in your favour, since you’ll be well aware of local real estate trends and will be able to work on your property with ease.
2) Two Words: Research And Research
Shortlist a number of deals and compare them before finalising on any one property. Be realistic in your expected returns and establish a timeframe. Make sure to know of any existing leases on the property, if any. To summarise, make sure you know the property and any associated costs like the back of your hand.
3) Get Help
Do your own research and try to understand the market as much as possible, but also try talking to a trusted advisor, somebody who can guide you on the basics of real estate. Look for an advisor who doesn’t have a stake in the deal and would therefore be more inclined to give you his/her unbiased advice.
4) Be Prepared For Surprises
There’s a good chance that when investing in real estate property, unforeseen costs will crop up at some point. You might have to spend money renovating the property, or if it’s a new property, you’ll have to put in money for its maintenance. Tax is also something that needs to be considered. Real estate has the potential to be a great investment, but one has to just make sure they’re ready to get into it.
5) Be Mindful
Before taking the plunge, try to forecast all the costs of managing a property. There are other factors to consider such interest on home loans, maintenance costs, etc. Always run the sales agreement by a reputed property lawyer in order to uncover any loopholes that might later on cost you much more than you’ve signed up for.
6) Understand The Market
As a novice investor, the biggest favour you can do yourself is to learn about the workings of the real estate market. By all mean, get advice from established real estate agents or friends, but by no means rely on them. Do your homework for yourself because only then will you land yourself the best possible deals. All that being said, investing in real estate is one of the most profitable decisions one could make, owing to high appreciation rates. Check out some of our properties here!