So this week I was in charge of writing the newsletter and decided to write 10 tips for investing in Real Estate, read on for more:
- Leave your emotions at the door. When it comes to buying your dream home then obviously what your personal preference is must be taken into account. However, when it is for investment purposes what you personally like may not be what could make you the most money. You should listen to your Realtor on what the trend is at the moment and what makes a good investment.
- Decide what your purpose is. For example if you want to buy something that people would want to rent for holidays then that would be a different property compared to a purchase for something that people would rent long term for living in. If a family is living in it for a long time then proximity to schools may be important. However, for holiday makers then what would be more important would be if it the property had a pool or it was close to restaurants or the beach.
- Have a budget in mind for any work that may need doing and a time frame for how long it will take to complete the work. Then accommodate for both to be broken! When you start work you never know what other jobs may come up or a certain job may be more complicated than it first looked, which means you may go over your budget and time frame.
- Talk to your agent about any upcoming areas. Perhaps a certain area is on the rise in popularity and you may get a good deal before prices start to rise.
- Consider buying off-plan. Although you have longer to wait before it is ready, by buying before it has been built you can buy it at a discounted price and that way already make money by selling it as soon as it is ready when the price will have already gone up.
- When buying a property that needs some work doing, don’t overspend more than is necessary as you could end up only breaking even when selling or even lose money. Your Realtor will be able to help you decide what must be done to make a good profit and what would be a waste of money.
- Ask others for advice but don’t let them sway you into doing something that could be purely to benefit themselves. For example someone who is a stockbroker may try to sway you into buying shares because they don’t make money from you buying Real Estate but they do if they can get you to buy shares. Try to find people who have invested in Real Estate and get their opinions.
- Don’t be surprised if you make a loss. As with any business venture nothing is guaranteed. You may be able to make good money investing in Real Estate but that doesn’t mean that along the way you wont suffer any loss. No one can predict the future or how the market sways. Just like in a store they may have that one item that is constantly getting returned and is just left taking up space in the warehouse. Or a car manufacturer who has to recall a certain model of car at their own cost to correct something that could put the safety of their customers at risk. Remember the loss you make on one deal you may make back double on the next one.
- Do your research when using companies. There are companies where their customer service is important and will go above and beyond for you. There are some that are only interested in making quick money and once they have your money they do not provide any further help and where the customer service is none existent. If you choose a good Realtor then they will have a great network where they can recommend further business’s you may need. They can point you in the direction of good lawyers, interior designers, mortgage brokers, painters and anyone else you may need. When choosing a Realtor see if they have any reviews, listen to what other people say. Don’t be afraid to ask them questions to find out how experienced and professional they are. Make sure they are very clear with you about their procedures and don’t be afraid to walk away if something seems like it could be a scam or that they are not experienced enough to help you find exactly what you are looking for.
- Lastly know your market. When you have found a good Realtor tell them to keep you informed and let you know when a property is a good price and when you should buy. Or when is a good time to sell your properties to make a profit.
Another tip for when you have your property/properties. If you are renting, every time a tenant leaves ask them if they notice anything that isn’t working. That way you can fix them before it becomes a bigger costlier problem.
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Have a great weekend everyone!