Real estate investment can be a great way to put your money to work and earn some solid returns. This is a market which doesn’t have the same level of volatility as something like the stock market, and when you invest in real estate you are making a tangible investment. This industry can be a minefield if you are not prepared however and that is why we wanted to bring you some beginner’s tips to help you get started. We spoke to the team at AAIM Development to bring you some vital tips which you’ll need to succeed, let’s take a look.
Seek Out Emerging Neighborhoods
Emerging neighborhoods provide a greta opportunity to make good money back on your investment and you can also find tax incentives for buying in these areas. Keep an eye on new government or private projects which are being planned, that will drive employment and infrastructure in these neighborhoods.
Don’t Overdo Renovation
When we buy a property which requires some work there is a temptation to go overboard in order to make the property as attractive as you can. This however is going to come at a large cost and there is little guarantee that you are going to get that money back. If preparing for a rental it is not necessary to buy the most expensive taps or the high end counter tops, make it nice of course, but keep it under a tight budget.
Invest in Maintenance
If there are maintenance issues on a property which you are looking at then it is vital that you get these problems fixed before you begin to rent the property out. Maintenance issues can quickly grow bigger and more expensive so it is crucial that you address them from the outset.
Looking at Crime Rates
When you are considering buying a property you must factor in all of the social and economic conditions of the community which you are investing in. One of the key factors to this is looking at crime rates, because this is something which a buyer or a renter is certainly going to be paying attention to. If you fail to do this then a bargain which you have found could turn into a place which is difficult to find tenants for.
Keeping Some Cash Back
It is widely understood that any budget which you have is likely to be blown whilst you are investing in real estate, so having reserve funds makes a lot of sense. What you also need however is a rainy day fund, some cash which you can use when something goes wrong or something changes. There are always additional costs which you haven’t factored in and in order to keep things running smoothly you will need to have some cash on the hip which you can use when the time comes.
Do your homework, research and understand your market and learn from any mistakes which you make, this is how to survive in the world of real estate investment.