Real estate investment is one of the proven ways to become rich, and there are many investing techniques that investors make use of. From house flipping to building or acquiring housing for rent to develop the agricultural potential of the property or buy or secure title to land, investors can choose numerous avenues of investment according to their investment goals. The main attraction of investing in real estate is the high returns from it compared to the stock market without facing too much volatility, says Eric J Dalius, who has been investing in real estate for quite long.
To succeed with real estate investment, these tips should give you enough confidence to do things right.
Choice of market and timing is most important, feels EJ Dalius
Concentrating on the local market where you have an interest will help you stay focused and complete justice in your investments. The factors that prevail in your specific real estate market will impact your investments; hence knowing precisely what is going around should boost your chances of making the right decisions. Remember that too much risk-taking might prove your undoing, and it is better to avoid hot markets that tempt investors for fast gains but might also result in losing money by buying at the top of the market.
The real estate market moves in cycles, and every real estate market has its housing cycle. Identify markets going through the expansion phase, where affordability is good, sales and prices are rising, construction is low, and there is an upward trend in capital investment.
Understand the market
A good understanding of the real estate market will help evaluate the price of an investment property correctly. Market knowledge and its assessment will help to work out the return on investment in real terms. It will give an edge when planning for suitable property renovation to make it appealing to expected buyers.
Tap into the hidden market
Buying a property from a distressed seller makes an ideal case for real estate investment. As you get it at a much lower value than the market. However, such properties can be in dire need of repair. However, it is better to look for distressed sellers who have not yet put it on the market. The ideal sellers could be a family selling off Mom’s home. After her death or a couple going through a divorce who wants to sell their home.
Stay aware of the upfront costs
Understanding upfront costs is crucial for beginners in real estate investment. While acquiring a property, you must bear many other expenses. And the property price and the commission of the real estate agent. Paying for repairs can be a major investment, and most beginners are unable to work out the cost. At least to work out some ballpark figures by considering the type of repairs required.
Engaging a professional valuer or property inspector should help to ascertain the real cost of the property.