Investment 101: The Basics of Real Estate Investment
Category Investment
Real estate has long been one of the most popular types of investments in the world. With scores of individuals pouring their savings and incomes into the real estate market. Usually, when people invest in property they are looking to make money in two ways. They either buy the home of their dreams and sell it after a few years once the value has appreciated or they purchase a residence with the purpose of turning it into a rental and generating a monthly profit. Despite what the motive may be, property investment remains a smart choice.
Have you thought about investing in property and kicking off your real estate portfolio? Amidst the multitude of options when it comes to investing it can be difficult to choose. If you are planning your entry into property investment - here is the lowdown on how to get started.
The first step is pretty simple.
Check Your Financials
Take a look at your monthly income and establish a budget that you won’t bankrupt yourself by buying a property. Most successful investors gradually build up their portfolio by saving funds and then purchasing real estate as time goes on. In this way, you ensure that if anything goes wrong you won’t be left high and dry.
Credit. Credit. Credit.
When you buy property, chances are that you will go to a bank or financial institution for a loan - if this is the case your credit score will be reviewed. In order to secure this loan, make sure that you do not underestimate the importance of a healthy credit score.
Residential for Starters
While you are just getting started in property investment, it may be a good idea to focus on residential properties. Residential is not only a popular investment but it is also much simpler than commercial or industrial property. It is easier to understand, buy and manage than other property types.
Pick a Pro
Choose a reputable real estate agency to work with before you begin searching for the property you want to invest in. It will make the entire process much easier as they will be able to best advise you on how to go about finding the right match. These professionals have access to the best resources and can identify exactly what you will need.
Up-and-Coming Neighbourhoods
When searching for an investment property, look in areas that have been identified as up-and-coming. These neighbourhoods where new development or redevelopment is taking place will generally have more affordable properties, that have a strong potential to appreciate substantially.
Location with Value
As the adage goes, the location of a property will always play a leading role in the desirability of real estate, however, it is important (when investing) to find a value-for-money property in these areas and not to spend millions on something that won’t show any returns. A house in a great locale that needs extensive maintenance or massive renovations may cost you more than expected - ensure that you establish what your returns will be.
Boasting years of property investment expertise Kamdar Group’s team of specialised property professionals will help you find the perfect investment property and guide you through your investment journey. Contact us today for more information on how to kick-start your real estate portfolio.
Author: Kamdar Group
