Real estate investing is one of the prime and proven ways to create wealth. There is no second thought about it. You can find several people in your know who have made their fortunes out of the capital gains generated by their investments in property market.
One right move in the property market can change your destiny. At the same time, a wrong move can have a devastating impact on your life. Real estate investing is a very serious game and today we are going to further our commitment to suggest you the best path. So, here are the set of tips and advices that will raise your level as a real estate investor by several folds.
Real estate investing is a process
For most people, real estate investing is about buying a great property and then wait until it accumulates sound capital gains. This is partially correct. Definitely, you need to search, research and then secure a great property that holds potential to appreciate with time.
But property buying is just the beginning of the story. Gone are the days when there used to be bidding for good properties and buyers used to persuade buyers. Today, it is different ballgame. Buyers are flooded with options and in order to get your property sold out, you have to be more active than before.
You have to keep track of the market, just like stock market investments. Ignorance has no room here. Sometimes it does not take much time for a positive looking market to turn into negative. The infrastructure projects which were boosting the real estate market may get cancelled or the adjoining locality may get a flurry of new property projects offering much better options at competitive pricing.
It happens often in the real estate markets and then you realize that there is no demand for your property, even if you become ready to compromise on certain aspects. Thus, you have to be conscious and cautious, being ready to take exit routes before getting stuck.
Real estate investing is time-bound
It is always good to take a long term perspective on your investments in real estate but there has to be some timeframe. You cannot hold a property forever, especially if it is bought for investment purposes only.
There has to be some timeframe to exit and book profits. Also, much depends on the type of property you invest in. For instance, if you have invested in plot or independent house, the prices of land may offset all your concerns. But flats and apartments do not have land, and it becomes difficult to sell them off after 8-10 years.
Just think and get into the shoes of a buyer. Will you buy a 10-year old apartment? Perhaps not. You will get much better options. So why would anyone buy from you an ageing property?
Always keep your real estate investments time bound. Ideally you should exit from your investments in a period of 4-6 years. Investments in plots and land-oriented properties can be extended.