Thursday, November 3, 2022

5 good tips for a successful real estate investment

5 good tips for a successful real estate investment

 5 good tips for a successful real estate investment

The last global stock market downturn saw millions of investors "every day" with severely burned fingers. Life savings were consumed overnight, retirement funds went into decline, and the economic outlook for all of us with money tied up in stocks and shares was bleak, to say the least.

As a direct result, thousands of investors turned their backs on rollercoaster stock markets and sought alternative asset classes in which to invest their hard-earned money. This has led to a global boom in real estate markets and property prices, and spawned a budding generation of real estate investors.

For those of you wondering if it's too late to venture into real estate investing or considering the best way to get the most significant returns from real estate investing, here are 5 top tips for successful real estate investing to get you on your way! potential earnings!

1) Consider investment property abroad

There are many relatively untapped real estate markets in countries around the world that offer the real estate investor a higher return on investment in the form of rental yields or short and medium term capital growth.

While the major markets in the US, UK, Australia and Europe are slowing down, there are emerging real estate markets around the world that are hungry for investment and are proving very profitable.

For example, in 2007 several countries are already lined up to join the European Union and, as a result, the real estate markets in these countries are likely to benefit from increased visitor numbers, more trade, increased investment in infrastructure and more stable economies. 

2) Make sure your plans are profitable

This sounds ridiculously simple, right? Well, you'd be surprised how few people actually make sure that their plans are really sustainable and as profitable as they hope.

Examine any real estate market you're about to enter by first comparing property values ​​in the city, state, or region and making sure you know what your money will buy. Then make sure that the rental yield you intend to get from your property is realistically offered, or that it is offered the asking price you intend to set once you have renovated the property.

3) Never assume anything

This ranges from assuming a house is structurally sound to accepting that the tax laws will not change, from believing your tenants when they tell you they are proud and honest of the house to accepting the first builder's quote.

Do your due diligence on every aspect of the process, from making sure a property's asking price is fair to checking your tax returns before your accountant files them for you. This is your investment, your future, your potential profit, and therefore ultimately your responsibility.

4) Hire an expert when in doubt

Few people are jacks of all trades, so be prepared to recognize areas where you're far from an expert, and at least consider getting a second opinion. Again, this ranges from checking the structural soundness of a property to understanding the legal ramifications of renting out your property. When in doubt, always double check, and if this means you have to call an expert, make sure you call an expert!

5) Set a realistic budget and stick to it

Whether you're buying property to rent or buying real estate to renovate, you need to sit down and add up each area of ​​projected spending so you can set a realistic budget to work with.

Be sure to add everything from conducting searches and surveys, legal fees, bookkeeping fees, insurance costs, potential interest payments on any required financing, taxes, connecting utilities, marketing to tenants or buyers, real estate agency fees And of course, don't forget to add the cost of the property and the price of any renovation, remodeling and decorating work that is required.

Take time to consider each area where a cost will be incurred and itemize each likely payment that will need to be made and you will arm yourself with a bulletproof budget and do everything you can to make sure you don't run into any nasty surprises.