If you have been working for some time, you probably have accumulated some form of savings, and the first mistake we don’t want to make is to let the money stay idle. There are many ways to work your money hard, and one highly recommended approach is through a real estate investment!
Good choice of property can appreciate in value over a shorter period of time, hence providing good profits when rented out or resold.
Real Estate plays a critical role in advancing towards financial freedom, through the passive and recurring income through rentals for example. It has less volatility as compared to stocks and shares, hence lower risk.
Simple methodologies involved, i.e: Finding the right property, Funding that property, and Farming that property (making profits).
Finding the Right Property
Given the thousands of properties available in the market, we want to choose the right property, so that the value can go up, and it can be easily rented out and resold when desired at a good price. Hence, to choose the right properties, we consider the following critical factors.
Location, Location, Location
Location is also the key factor in looking out for a suitable property. Ideally, it should be near common amenities and facilities such as schools, markets, bus and train interchanges, shopping centers, and parks. If you can find a location with all these plus factors, you are in luck, because such places tend to grow in value fast, and hence proved profitable for you in no time.
Nonetheless, it is all up to personal decisions. You may desire a place which is quieter and away from the urban chaos, but that could compromise on some of the accessibility and conveniences which could in turn have an impact on your property future value.
The common phrase “Size Does Matter” and that is especially so in real estate investments, which is the first impression when a potential tenant or buyer steps into your house. Besides considering space for the living rooms, and bedrooms, extra spaces like garages, basements, outbuildings, car spaces, and swimming pools are often a plus point during property valuation.
Age of the Property
Age of the property is important in determining its value. Older houses have much different styles from modern houses, and this can be both a pro and a con.
Pro in the sense that if your house preserves some nice traditional architectural designs, which may be highly loved by the prospective client. Also, take the opportunity to increase the selling price, hence making better profits.
Cons in the sense that if the client prefers houses with more contemporary designs. This could have a dire impact on your older property given that it is harder to sell or rent. This could end in a price war which is lose-lose investment for you.
Price of the Property
Price is definitely in the consideration. It is essential to do a market research in the neighborhood for similar properties before jumping to a decision.
Also, if you intend to take on financing, you should check out the different bank interest and other money issues that can occur. You wouldn’t be caught in a surprise when doing the final purchase decision.
Condition of the Property
Arguably one of the most important attributes to look out for in a property. You may have found the best location, the biggest size at the most affordable price, but if the condition is inhabitable? What does it make of your newly bought property? Nothing!
Hence, it is crucial to observe the condition of every potential property. Also, take into account the potential repair fees required for that property. Think about what factors into the overall pricing of the property. See if it is still worthwhile to buy that property.
To conclude, I have shared with you some valuable insights to why you should adopt Real Estate Investment as one of the very feasible methods to grow your money, and create a steady passive income to achieve your long term financial freedom goal and also essential tips for choosing a property to fulfill that aim.
Next steps is to take actions, and wish you success in your Real Estate Investments!