There is no wrong time for investing in property. Although the real estate market could take a hit if there are any changes in the economy, it is still considered one of the strongest investments that anyone can make because it will keep increasing in value over time.
But being a newbie property investor is no easy feat. Since one wrong decision could make you lose a lot of money, you need to follow these five tips to make sure that you’re doing property investment right.
Tips on How to Invest Right
- Know where you stand financially.
Property investment is an excellent way to improve your finances. But before you could be an investor, you need to know where you stand financially first.
If you still have a lot of debt, pay them off first so you can give your budget a little breathing room and start building up your savings. You can then use this money to invest in assets like property.
- Create a property investment strategy that works for you.
There is no one-size-fits-all rule for property investment and that’s because every property investor is different. But if you are to get a good headstart in investing, you need to keep your day job first and use property investment as an extra source of income.
You can then increase your investment as you start to learn more about the industry.
- Start with REITs.
If you haven’t tried investing in property before and you’re not ready to put a lot of money into physical real estate, you could try your hand at Real Estate Investment Trusts (REITs) that you can purchase through brokerage firms.
Much like mutual funds, REITs are offered by companies that own commercial real estate and they are known for paying high dividends. Just make sure that you invest in publicly traded REITs to get a higher chance of growing your investment and decrease your risk of losing money.
- Choose your target market.
You can’t just dabble into property investment and expect to please every kind of buyer because honestly, you won’t.
Having a target market in mind will help you choose the right properties to invest on, stage, and market those properties and close deals because you already know what your market wants and you can focus on pleasing them.
- Select your team wisely.
Any seasoned property investor will tell you that you need a team to succeed in real estate investment. Although this doesn’t necessarily mean hiring employees, you need to work with the right advisors and contractors who can share with you their areas of expertise so you can make better decisions as a property investor.
Your “inner circle” should include your spouse, business partner and mentors while your “support circle” should include your property manager, attorney, accountant and lenders.
Are you ready to dabble into property investment? Follow these tips to get a good headstart in building your wealth as you invest in real estate.