If you have been working for some time, you probably have accumulated some form of savings,
and the first mistake we dont want to make is to let the money stay idle.
There are many ways to work your money hard, and one highly recommended approach is through
Real Estate Investment.
TOP 4 Reasons to choose Real
Estate Investment?
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1) Good choice of property can appreciate in value over a shorter period of time, hence
providing good profits when rented out or re-sold.
2) Real Estate plays a critical role in advancing towards financial freedom, through the
passive and recurring income through rentals for example.
3) Real Estate has less volatility as compared to stocks and shares, hence lower risk.
4) Simple methodologies involved, i.e: Finding the right property, Funding that property,
and Farming that property (making profits)
How to find the right property !!
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Given the thousands of properties available in the market, we want to choose the right
property, so that the value can go up, and it can be easily rented out and resold when
desired at a good price.
Hence, to choose the right properties, we consider the following critical factors.
Real Estate Factors (1) –
Location, location, location !!
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Location is also the key factor in looking out for a suitable property. Ideally, it should
be near common amenities and facilities such as schools, markets, bus and train
interchanges, shopping centres, and parks. If you can find a location with all these plus
factors, you are in luck, because such places tend to grow in value fast, and hence proved
profitable for you in no time.
Nonetheless, it is all up to personal decisions. You may desire a place which is quieter and
away from the urban chaos, but that could compromise on some of the accessibility and
conveniences which could in turn have an impact on your property future value.
Real Estate Factors (2) – Size and
Amenities
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A common phrase “Size does matters” and that is especially so in real estate, which is the
first impression when a potential tenant or buyer steps into your house. Besides considering
space for the living rooms, and bedrooms, extra spaces like garages, basements,
outbuildings, car spaces, and swimming pools are often a plus point during property
valuation.
Real Estate Factors (3) – Age of
the property
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Age of the property is important in determing its value. Older houses have much different
styles from modern houses, and this can be both a pro and a con.
Pro in the sense that if your house preserves some nice traditional architectural designs,
and that is highly loved by the prospective client, you could take the opportunity to
increase the selling price, hence making better profits.
Cons in the sense that if the client prefers houses with more contemporary designs, this
could have a dire impact on your older property given that it is harder to sell or rent,
ending up in price wars which is lose-lose situation for you.
Real Estate Factors (4) – Price of
the property
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Price is definitely in the consideration, hence it is essential to do a market research in
the neighbourhood for similar properties you are looking for before jumping to a decision.
Also, if you intend to take on financing, you should check out the different bank interest,
and other money issues that can occur, so that you wouldnt be caught in a surprise when
doing the final purchase decision.
Real Estate Factors (5) –
Condition of the property
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Arguably one of the most important attributes to look out for in a property. You may have
found the best location, the biggest size at the most bargainable price, but if the
condition is inhabitable, what does it make of your newly bought property? – Nothing !!
Hence, it is crucial to observe the condition of every potential property and take into
account the potential repair fees required for that property, and factor into the overall
pricing of the property to see if it is still worthwhile to buy that property.
Conclusion
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To conclude, I have shared with you some valuable insights to why you
should adopt Real Estate Investment as one of the very feasible methods to grow your money,
and create a steady passive income to achieve your long term financial freedom goal and also
essential tips for choosing a property to fulfill that aim.
Next steps is to take actions, and wish you success in your Real Estate Investments !!