Saving for the Future? Think of Investing in Real Estate

It’s true what they say, investing in Real Estate is not for everyone. It’s not a quick get rich scheme, instead it is something that requires time, patience and most importantly planning. What is funny about this logic is that it is not much different than investing in other investments and it could yield a very high return if done right. Real estate is a tangible good as opposed to other type of investment portfolios so its value doesn’t decrease as quickly as some other riskier ventures, but it does depend largely on the economy. 

So what are some things that you may want to consider before jumping the gun and investing in a property? 

Think Longterm

You’ll need to have all your personal finances in order and realize that this is something that make take a few years before it really starts paying off, it requires an upfront investment that can later create income by being rented out. Make sure that you plan for this from beginning to end, it is also smart to keep an exit strategy in your back pocket in case things turn sour. 

Be Realistic

A lot of people think that getting a bargain home is a great idea, that they’ll put it in a couple of thousand dollars and have something that is ready to move in after light repairs. Take your time and go through homes carefully, or even better get a real estate agent that knows what they are doing so they can ensure that you are getting a home that will eventually pass a proper home inspection. Don’t take projects that you think you’ll be able to fix on your own, most often times than not, you’ll need to hire a contractor to help. A good real estate agent can help with most of these things, and honestly they should!

Location, location, location

Pick a neighborhood with a centralized location or an up and coming area, good schools and not too far from city centers. Your next step is to check to see how much you will get for the property if you rent it out, does this cover the mortgage and all other costs associated with the purchase? If not, then you may be looking like at a very good investment. 

Ask yourself these questions because like i’ve said before this type of investment is not for everyone. Take your time and don’t rush into anything that quickly because this is something you will own for many years to come. 

As always, give me a call or shoot me an email if you have any questions about investing in Real Estate, especially if this is your first time, i’m here to help!

-Rhonda