Essential real estate investing tips for beginners
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The current economic climate across the globe is tumultuous. There is very little certainty, and people are cautious when it comes to taking unnecessary risks. Despite the effects of various crises arising throughout the world, real estate remains one of the safer, more reliable investing options. Property is sometimes considered a long-term place to “park” finances – meaning it often either retains value or greatly increases over time. Investing the right way is key, however, as making unwise and hasty decisions can lead to major losses. With logical forethought and careful planning, as well as expert assistance from real estate professionals, it is possible to pursue a profitable, successful investment endeavour.
Plan for your goals carefully
Setting clear goals will give you the right outline upon which to base your real estate investing decisions. Are you seeking swift capital growth? Or do you have a long-term approach in mind that grows your money over time? These goals should be reachable and measurable, and will require strategic planning concerning the costs involved. Once you have requested pre-approval of your investment loan from the bank, you will have a clearer picture of your available investment options.
Decide on your ideal target market
While it is a superb time to buy, reselling or renting out your property might not be simple. Look for areas with high demand and take the time to research your target market. Consider the types of properties currently performing well in your chosen location, and follow the predicted future trends to make the best decision. Sectional title dwellings in complexes and homes in gated communities are highly sought-after at the moment for their affordability and security. Areas once reserved for holiday-goers or retirees, such as coastal regions, are also in demand for in-land citizens who can now relocate while working from home.
Buy-to-let investments offer great returns
Buy-to-let real estate investing is a preferred option for many investors, and it provides a monthly revenue. In the beginning, the rental income can be used to pay off the bond on the property and any added expenses too. Eventually, it becomes a passive income that one can use to purchase other properties and grow one’s portfolio.
Flipping homes may also be profitable
If you are keen on a creative project and are looking for a faster return on your investment, flipping properties may be for you. It entails purchasing homes that can do with some remodelling, increasing the interior value and curb appeal, and then reselling it for a higher price. While upgrades can be expensive, the right team and strategy (such as redoing key areas like kitchens and bathrooms), can yield a large profit.
Not all bonds are equal
A home loan granted by a bank is a popular form of funding for most real estate investing. Not all banks, however, have the same lending criteria, and some will charge you higher interest rates than others. Take some time to do your research and compare the deals on bonds that are best suited to you, so that you can essentially get more for what you pay.
Find the right properties with professional assistance
With real estate investing, it is easy to bite off more than you can chew. It is important to make decisions within your means and avoid large risks as a first-time investor. This is where an experienced real estate agency is so important, such as our team at Fine & Country South Africa. We can help find properties that match your requirements and present the best prospective returns.
Building a robust property portfolio does not happen overnight, it takes time. With the right assistance, you can create immense wealth and meet your investment goals, and we can get you there. For market-specific expertise, access to exclusive listings, and unparalleled professionalism, let us be your preferred experts. To contact us, click here.