Get into the real estate game and build your wealth. Here’s what to look for in a home or property and know what’s up for you.
The National Home Price Index shows that real estate prices have risen year on year since 2011.
In 2016, roughly 1/3 of the U.S. population lived in rented accommodation and rental rates rose faster than wages.
September 2016 saw new home sales rise by an unexpected 3.1%
2017 is a great time to get into the real estate investment market, it’s positively booming, but you need to do it right.
Many people think that they have the makings of a real estate tycoon, and with a little research, you can start on the investment ladder.
We’ve pulled together a few things that you should think about before making the leap.
Perfect Real Estate Investment
Before jumping in and just buying the first property that ‘feels right’, you should remember that you’re not buying this real estate as a family home – it’s purely an investment.
Whether you’re going to flip it, rent it or hang on for a rainy day, the property has to work as an investment right now.
Most serious property investors will tell you that if you’re relying on appreciation for a sizeable return on your money, then it isn’t the right property.
Make your profit when you buy; in other words, buy it at the right price to make money today, rather than in ten years.
You may need a degree of imagination when viewing your big investment, don’t be put off by a shabby appearance, providing the price reflects the work needed.
There are a number of things to think about when looking at becoming a real estate investor.
- Start with the end game in mind – understand what it is you want from the investment.How are you going to make your money? Is it a question of buying cheap and selling on?Or looking for a rental income?
- Know the market – a property selling for $20,000 below the average price isn’t going to work if it needs $30,000 of remodeling.Equally, if rental income is your goal, you should ensure that the rental prices in the area more than cover your outgoings.
- Understand the numbers – what’s it going to cost?What sort of ROI are you looking for?Will it make more money than just leaving your money earning interest in a bank?
- Negotiate – the art of negotiation is just that – an art.Just jumping in with an offer below the price may not work – explain why you’re offering less.
- Be quick – many investment properties get sold to the first offer; try and be that first buyer.
- Take some professional advice – having the money available doesn’t necessarily mean you’ll know the market.
While most new millionaires are made in a real estate recession, bear in mind that it isn’t a foolproof ‘get rich quick’ scheme.
Finally, like any other business, we’d say that you should only invest what you can afford to lose – what if the real estate market slumps even further?
It seems simple, but finding the balance between rock bottom prices and values increasing is an art.
For more information visit Manausa.com.