Investing in real estate is a good idea whether it is for residential or commercial purposes. It can, however, be quite daunting to invest in property because there are so many factors to consider. If youâ€™re looking into investing in the property market, do your research! These 6 important tips will help you make great decisions when investing in real estate.
1. Donâ€™t Blow Your Budget
The fist thing to look at is your budget: what can you afford? This sounds simple enough, but lucrative properties often seduce people into blowing their budgets. It is a good idea to consult an accountant to advise you on your finances and help you establish your budget. Remember to also account for all the additional costs and, of course, for potential refurbishment.
2. Do your Homework
Real estate can be a great way to invest, and like any investment it is essential to do the necessary research. Before you invest in any property, you must map out a strategy. Consider if you need any professional assistance, and choose according to your needs and budget. Next you should consider the type of real estate you are looking for and what purpose it will serve. Also think of aspects like the maintenance, potential rent and the potential reselling value.
3. Location, Location, Location!
One of the first things to think about before investing in a property is the area. It is thus essential to scout the neighbourhood and find out all that you can about the area. When investing in commercial property, consider your needs and how convenient the location is. Take note of the proximity to various infrastructures like major roads, seaports, airports and related businesses. Also think how accessible it is for business associates and its proximity to CBDs, public transport and other resources you might need. You might also get insight from nearby property owners to learn from their experience about the area. Likewise, if you are looking at investing in a residential property, speak to the neighbours to get a sense of the neighbourhood and learn about the areaâ€™s pros and cons.
4. Shop Around
Investing in real estate shouldnâ€™t be an impulsive decision. It is likely that the type of property that fits your needs and wants might take some time to find. Keep in mind that whatâ€™s available on the market changes quite regularly. If you donâ€™t find what you are looking for, give it time. Be aware that there are multiple sources to get property information from like the internet, newspapers and catalogues or through estate agents. You might choose to hire a professional to scout on your behalf, as the experts are usually well connected, know the market and can even negotiate on your behalf. Keep a checklist with you when viewing properties, and of course record all pros and cons about each potential property.
5. Be a Bargainer
Donâ€™t forget that property investment does allow for some price bargaining! Thus if a property is a little out of your budget, donâ€™t dismiss it entirely. There is always a chance that the seller needs to sell immediately and you could strike it lucky. Having said that, use your research to keep offers realistic. Most often, bargaining is a reciprocal process and may take a while. Remember that if haggling isnâ€™t your strong point, get a professional agent to help you out.
6. Get Good Advice
Investing in real estate is not something to take lightly, therefore do not go into in blind. If you are uncertain about making an investment, choose an expert in the department, like Goodman Commercial Property to help you evaluate investments and select one that suits your specifications. Companies like this owns, develops and even manages a wide portfolio of properties and can ensure that you make a sound investment. If necessary, you should also consult your lawyer and personal accountant to discuss the propertyâ€™s financing.
Author bio: Alberta is thinking of investing in real estate and is busy planning her budget.