There can be no doubt that real estate is one of the most attractive of investment categories for generations. Real estate has been seen as a haven in times of troubles and for many people the ownership of property was seen as not only the cornerstone of family life – but also the path to wealth and prosperity.
Nothing has changed in that, aside from a few hiccups caused by a stuttering global economy in the 90’s, real estate continues to provide excellent ROI over the medium and long term.
So for those who want to dip their toes into the waters of real estate investment what are some of the factors to consider when buying that first property?
Firstly the old saying ‘location, location. location’ is just as true as it was when the real estate moguls of the 1920’s began to use it as their mantra. The best advice is to find the best neighbourhood that you can afford. If that means taking a loan to but the worse house on a great street then so be it. You can always fix the house – but that street is there to stay. That approach will help you to build up your equity in the property and one of the best places to find such properties is on https://www.mouseprice.com/
However when looking at what are sometimes called ‘wholesale properties’ – what many people call ‘fixer uppers’, be sure to balance the savings with the amount that you will have to spend to bring the house into line with something that buyers – or for that matter renters will be interesting. it’s no good buying into a fixer upper only to find out that you simply do not have deep enough pockets to make essential repairs.
In fact the best approach is to purchase a property that only needs cosmetic repairs. A new coat of paint, new fixtures, guttering, a sprucing up of the front garden and yard – that sort of thing. Try and avoid houses with structural problems they are more trouble than they are worth and will eat into your savings extremely quickly.
The second part of preparation for purchase is to understand the tax benefits that you as a property investor can make use of – these can make property investment extremely attractive.
Thirdly – do your research, for instance get a credit report and sort out any mistakes that might appear on it.
The key to successful investing in real estate is to do the research – that way you will reap the profits.