Things To Consider Before Investing In Real Estate
Introduction
Investing in real estate is a very tedious job, but, it is a very good in-vestment for a better future. Investing doesn’t mean only building good reputation or getting good returns.
The secrets behind getting good returns lies in understanding what makes real estate investment best. There is no need to be an expert for investing in real estate. By your experiences, you will find the ways to invest in it.
There are some points to be considered before investing for first time in Real Estate. In the next slides, find the things to be consid-ered before investing.
Whether you are ready to invest?
Investing in Real Estate is not for everyone.
You need to find out whether you are financially
strong to buy a home. Read real estate related
books, forums and have an understanding of Real
Estate Investment.
Do you have a plan?
Many investors suffer a loss in investment due to
lack of planning.
You need to plan out each and every thing before
investing by thinking of its effects.
Connect with Local Investors
Begin hanging out with Investors where they are
mostly active.
Ask them to show their properties online, as they
would feel that you are interested.
Think of what type of property to start with?
There are different ways to invest in Real Estate.
You just find a strategy which suits you better.
Avoid investing in the expensive homes, as net
rental income is lower compared to it.
Have a look at Neighborhood
It’s not important to buy a home in expensive place,
it is mandatory to look whether the location is
preferable for a stay.
If you are planning to buy a home, visit that place in
different times of the day.
Make an estimate of Investment Ex-penses
Many first time real estate investors fail to make an
estimate of their expenses.
There is one rule known as “50% rule” which states
that expenses on a property will equal 50% of the
income.
Plan how will you pay for your Invest-ment property
There are different ways through which you can
pay for your investment property.
If you have money, pay all cash and not deal with
banks.
Think Of whether you can manage all Book keeping work
Ask yourself “Will you be able to do all the
bookkeeping?”. Because it is not an easy task.
Or else appoint a professional to keep track of all
the numbers.
Plan for an Exit Strategy
Many Investors don’t have a plan of what they are
going to do after they buy a home or invest in
property.
Many of them invest in Property with an intension
to sell it at higher price, but if rate falls then they go
in loss. So have multiple plans for your investment.
Conclusion
Thank you for watching my presentation. I think it would be useful for you all, when you are planning to invest in Real Estate Prop-erty.
I would be happy, if this presentation will help you in some way.
Sources
http://www.inman.com/2015/05/06/top-real-estate-
trends-for-investors-in-2015/
http://www.realestate.com/advice/buying-your-first-
investment-property/
