E-mail :

Password :

Forgot Password? | Sign up for Free

Investing in real estate like the professionals

Posted by : Premraj | Posted on : Wednesday, October 25, 2017

condos
SHARE THIS
FACEBOOK

Buying real estate can seem like a great way to make money. Whether you go for a fix n’ flip, buying a property to renovate it and sell it on at a higher price, or whether you’re buying commercial or residential properties as a long-term investment, there’s certainly a lot of potential in real estate speculation.

But there are also many pitfalls awaiting the inexperienced investor. The main barrier to making money out of real estate is that you need a sizeable amount of capital, generally plus credit, to invest, to begin with. If things don’t go according to plan, you could end up losing your nest egg instead of increasing it. Real estate professionals like Axel Preuss-Kuhne might make wealth accumulation through property look easy, but their success only comes as the result of a great deal of experience, expertise, and hard work. These tips will give you some idea of what goes into making a good profit out of real estate, but remember, there’s no substitute for doing your research, and there will always be a certain amount of risk involved.

Study neighborhood prices 

Are house prices in one area of town rising faster than in others? Is the average house price more or less than in neighboring districts? Making a study of prices will give you a sense of where the demand for residential property is, and will also help you grasp what a fair price is in any given neighborhood. School rankings are another good indicator of whether an area is on the up. Parents always want to live close to the best schools.

Watch the suburbs and outlying towns 

As cities and town centers become more expensive to live in, so outlying areas become more desirable. As families move out, infrastructure will be built to accommodate them, and prices will go up as these formerly sleepy neighborhoods become more vibrant and fashionable. Look out for places with good transport hubs connecting them to the city, and also for new rail depots or bus routes being added.

New construction projects are often a sign of an area being on the up- although not always! If you see land being cleared or girders going up, inquire at the town hall about the nature of the venture. New schools, roads and shopping centers are good indicators- jails and some industrial works, less so.

Consider commercial property 

Many first-time real estate investors automatically look for residential property, but the commercial sector can often offer greater financial rewards over a longer time frame. Commercial real estate is valued according to useable square footage and is generally leased for longer periods. You’ll need to raise a deposit of at least 30% of the total value to get a commercial property loan. Different types of commercial property include retail, office, industrial and even self-storage, and it’s crucial to understand the field before investing.

Buying to renovate 

As mentioned above, ‘fix n’ flip’ is a well-liked real estate investment option, especially if you have the skills to do much of the renovation work yourself. Buying a down-at-heel fixer-upper at a bargain price means that if you put the work in, within 12 months you could be selling on a reinvented building at several times what you paid for it. Just remember to factor in the cost of the renovations, including hiring in professional tradesmen, or the time you’ll need to commit to doing the work yourself. 

Buying to rent 

Another popular option is to buy a property in order to rent it out, becoming a landlord. Landlords may have extensive portfolios of such properties, and you can get a good income from rent payments- after subtracting your mortgage and running costs of course- before selling the property at a profit 20 or 30 years down the line. Just remember that being a landlord comes with its fair share of hassles: even if your tenants are the nicest people in the world, you’re still responsible for fixing their plumbing, keeping the place in good repair and sorting out what will sometimes seem like an endless stream of minor problems.

An alternative to long-term rentals that is becoming increasingly popular is short-term rentals. In certain areas, it can be very profitable to buy a property that can be rented out to visitors and holidaymakers via Airbnb or similar sites. Especially in major cities and tourist destinations, there’s a growing demand for unique and flexible alternatives to hotels that real estate investors can capitalize on.

Whatever approach you go for, have an exit strategy and do the math thoroughly. Calculate the risks, think it through, and know when to walk away. That is the secret to acting like a true real estate professional.

 

Comments : Post a Comment | Category : Buying Home, Mortgage | Tags :
money transfer

In some situations, the best place for you to store your emergency funds will not be in the bank. In some cases, one of the very best places you can keep these savings is in your own home so you can easily get to it during any critical situation. Keep in mind, by keeping cash […]

Read More >>

credit-card

For many people, one of the worst feelings that they can have is coming up short in the money department when trying to pay their bills. With the economy still struggling, many people find themselves in this situation nearly every month. If you have bad credit, then it is hard for you to obtain anything […]

Read More >>

tax-help

As your business expands, you should develop strategies that help you streamline and enjoy greater profitability. Outsourcing your HR service and encouraging employees to work from home can save you cash — but you might find that your biggest stumbling block is the taxman. Offshore accounts could be the solution — despite regulatory regimes growing […]

Read More >>

taxi

As an increasing number of people turn to being a rideshare driver either to earn extra money on the side, or even as their primary career, there are some things to keep in mind in terms of logistics. One of the things that people seem to be mostly unaware of are the insurance requirements for […]

Read More >>

business

Starting a new business is an exciting time. You have so much to look forward to and so much opportunity in front of you. However, there are also several important things to consider from expenses to materials and more. With all that responsibility falling on your shoulders, it’s smart to find ways to save money […]

Read More >>

private jet

If you frequently travel for business then you know that it is not always a comfortable or easy process and can actually be stressful. With flights being delayed or uncomfortable you can be left feeling tired and disappointed. This is the last thing you need if you are traveling for an important business meeting. But […]

Read More >>

student

So, you want to get paid to be a songwriter? Lots of other people do too, and it isn’t hard to understand why. Songs, more than any other art form, capture our emotions. They get into our heads and become a central part of our lives. For many of us, our favorite songs become essential […]

Read More >>

security

Recent research by the Global Fraud Attack Index shows that online fraud attacks rose by a massive 137% in the year ending March 2016 and fraud is now thought to affect $7 out of every $100 of global retail spend. In Europe alone, the cost of fraud rose by 8.9% in the same year, and […]

Read More >>

50th Anniver

Your retirement may be decades away now, but it will arrive one day. While we all hope our sunset years will be serene and slow-paced, without some advance planning, your golden years could be the most difficult time in your life. How so? If you don’t have the finances to keep up with expenses, as […]

Read More >>

credit-card

Your credit score matters more than you actually think. Whenever you take out a new loan or a line of credit, the credit score is one of the primary elements that will determine your risk factor in the eye of the lender. The amount of interest you have to pay for the loan – and […]

Read More >>

Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video