4 Tips On Investment Property. Real-Estate always has been, and is likely to remain, one of the most solid investment opportunities. Although the market may suffer short term ups and downs, if you are willing to hold on to an investment property for a long period of time, it will almost certainly be profitable. Investment property, particularly in urban centers, can also be extremely profitable in the short term. Here are some tips: Location, Location, Location – The old real-estate adage remains true to this day. Consider development trends carefully when looking into a property. Almost any real-estate expert will tell you that it is better to own an inferior building - in terms of structure and design – in a good location than a great building in a poor location. Remember that almost everything about a building can be changed and improved except its physical location. When looking at an investment property, keep in mind that you want people to live / work there, so look at Start Small – Investment property, obviously, involves putting down large amounts of money and sometimes waiting a long time for your payoff. If you’re not in a position to buy a large property right away, consider something smaller: a condo unit within a larger building for example. If you keep in mind the location advice above, small properties can still turn into profitable short term investments. what’s around it and the neighborhood trends carefully.
Flipping – Flipping is a term, used mainly in reference to new condo units, to describe the process and buying a unit early, spending money on renovations, and selling – “flipping” – it a short time later for profit. Flipping usually works best if you can be one of the first to get a new condo property. Depending on the location, you could easily acquire a unit for $150,000, put $100,000 into it, and flip it for $300,000 – a great profit in a short amount of time. Avoid Unusual Property – Although it may be temping to buy a truly unique piece of property, you should avoid this, especially when starting out. The problem with unusual property is that it’ll likely have a narrow appeal, and you could find yourself stuck if you need to sell it. If you need to sell, you want the kind of property that will appeal to most families and sell quickly. what’s around it and the neighborhood trends carefully.
In many cases, investing in property can be an excellent long term investment. When starting out with investment property, remember to focus on location and starting small. Unlike paper investments, property requires very real maintenance and upkeep, and if you acquire too much property too quickly this can quickly become overwhelming. You are far better off selecting a small amount of property in a good location. Also keep in mind that – although this sounds obvious - your building is a physical thing: when doing maintenance or upgrades it is well worth it to pay for quality workmanship. When buying real-estate, keeping these tips in mind will result in your property turning into a great long term investment. |
