Investment in real estate is a commitment. It takes time, effort and dedication to make your mark on the industry. And while you might not aim for property speculation to become your full-time career, it can be a prudent source of passive income. In fact, the return on real estate is often more reliable than stocks. Here are a few simple tips to help launch your property empire.
The real-estate market is mercurial. Acquire an in-depth knowledge of the industry and keep abreast of any changes. This applies to rules, regulations and guidelines as well as market factors. Relying on out-of-date information will only hinder your success.
You needn’t listen to every seminar or read every book, however. Online research is vital, but you should also tap into the knowledge of any real-life experts you know. Build up a network of savvy – and indispensable – individuals, whether they’re lawyers, business owners or mentors.
Firstly, set out your aims and goals. Without a game plan, success is just a vague spot on the horizon. With a clear objective in mind, you can work backwards and take achievable steps towards your target.
Make sure to meticulously plan your financial goals. An understanding of the costs and risks is essential to clear any hurdles you may come across. Run a financial analysis on properties you’re interested in. Be realistic and decisive, and don’t settle for a higher price than you’ve calculated.
Time it right
Don’t buy the first home you find. There’s nothing quite as valuable as viewing a range of different properties. Assess the variety on offer, as well as the level of competition in the market. Don’t rule out a property that may take a little work. If you’re buying to lease or let, the place could be a practical investment without meeting your personal living preferences.
Don’t wait too long, however. Navigate the balance between rushing a decision and allowing the moment to escape.
Sign up to foreclosure listings
These services are worth purchasing as they help you identify foreclosure deals in your desired neighbourhood, quickly and efficiently. Foreclosed properties tend to sell below market value. If you find a slightly undervalued property that has the potential for development with a solid ROI, set the wheels in motion to purchase it as soon as possible.
Utilize your toolbox
Tap into your prior knowledge, past experiences and social circle. Do you know a reliable accountant? Delegate your taxes to them. In terms of time and money, the savings you’ll accrue are significant.
Investing in real estate is simple once mastered. Set yourself up for success and you’ll soon reap the rewards. To began searching for potential investments, browse Engel & Völkers online or locate your nearest E&V branch and speak to one of our advisers.