Strategies For Investment in Properties For Beginners
Many are beginning to find out about investment in properties. It’s not difficult to know why. The value of our money is becoming smaller, a phenomenon called inflation. Through inflation, whatever that money can purchase becomes more expensive and property is one of these. Additionally, property millionaires made it to Forbes Rich List.
Majority of people make investment in properties to hedge against inflation. This is because the purchase price of real estate increases in time, also known as capital appreciation. Based on which country you come from, you will have to pay capital gains tax if you sell the house. Most people favor investment in rental properties where you get income on a monthly basis. Irrespective of whether you’re investing in property for income or capital appreciation, it is good to have a peek at the investment from the following areas. In this article, we will focus more on rental property.
Location, location, location
This has been the mantra of most, if not all, real estate investors. The positioning of your property will ascertain whether the property cost increases with time and when the renter is quick to find. Whether your property location is a good place, make sure to know it’s in close proximity to industrial places, public transport, universities and a city boat. Suffice to say, your tenant will arrive in the kind of students and outstation job seekers at the locations.
The benefit is in the Purchase
It’ll be goes without say that you have to know and keep track of the costs of land. Look at the classified ads section, foreclosure notice and even at bank auction property list. Compare the asking price to that saved in your database. Get it, when you have found one property that’s at least 15% lesser than the prevailing exchange rate price! Buying properties at below market cost will guarantee much better return.
Now that you’ve decided the location and the entry price that is best what is there to do that? Get it leased of course. There are numerous channels to rent a house out. You can post it the notice board of local convenience store; ask your friends to spread the word that you have a house and even now Facebook has gotten popular. Be imaginative and innovative.
Patience is a virtue
After putting up notices for lease and spreading the news, all we could do is to wait patiently. And patience is a virtue for real estate investors, especially Real Millionaires.
Keep a community of professionals
As you learn the ropes of being a property millionaire, you will encounter professionals associated in this sector including Real Estate Negotiators, Bankers, Conveyance Lawyers and also other investors. These are your professional networks and future friends. Keep in contact and share info among yourselves.