If you are looking at various investment opportunities, you are sure to encounter real estate, which has long been a relatively safe bet, in terms of stability and longevity. Why shouldn’t you tie up your wealth in bricks and mortar? It’s not like a building can up and run away and the demand for housing and business premises is on the rise.
Whichever way you cut it, property investment is always going to be a significant amount of money and that means there are many factors to consider.
- Define your investment goals – Prior to making any investment, you need to define your goals. Are you looking for a safe long-term investment? Perhaps you want a regular income and a rental property looks attractive – once you define your objectives, you can start looking at options. Have you considered flipping houses? Buying rundown properties, renovating and reselling for a profit. Rental property offers a regular income, if you can handle the pressures that come with renting out property.
- Do your online research – The World Wide Web hosts a wealth of info on property investment research and spending a few hours reading what the experts say will help you gain a deeper understanding of the sector. Delve into the tax implications of having 3-4 properties, which may be your eventual goal; why stop at one? Talk to an established business lawyer about rental property as a form of business and find out your tax liabilities.
- Location – Real estate prices are determined by location; for long-term investments, look in rural areas that will soon be developed, and then you can ride the wave of high land prices. Property developers are ready to move in when an area shows signs of development, buying large chunks of farmland and applying for planning permission.
- Building maintenance and upkeep – When you invest in bricks and mortar, you have to look after your investment; a building quickly goes to seed if left empty for a few months. Rental properties are generally managed by a local builder, which is the best option. The grounds are also the owner’s responsibility, although there might be a clause in the rental agreement for the tenant to manage the garden. Click here for information on buying real estate in Alaska.
- When to buy – Land prices are never set and if you are looking for an investment property, try searching online for repossessed houses that are put up for auction, as this is where to find cheap real estate. Take your time when looking at properties, your head should rule your heart when making investment decisions.
Property investment is one of the most attractive ways to generate wealth and if you think you are ready to make a significant investment, make sure that you have done your homework. Many wealthy people started with a single rental house and went on to make millions, the opportunities are there, all you have to do is take them.