If you’ve been looking to start investing, real estate has likely been an option you’ve thought about or discussed with others. Real estate investing can be an incredibly tempting option for investors looking to make a serious profit; a survey by Better Homes and Gardens Real Estate revealed that 96% of people who have invested in real estate believe their decision helped them achieve financial success. However, investing in the real estate market isn’t easy, and beginners are more likely to lose money on their investment. If you want to make the most of your investing decisions, keep these tips in mind.
Consider All Your Options
Before you start looking at properties to purchase, make sure you really want to be investing in real estate. Since 2000, real estate has outperformed the stock market approximately 2-to-1, but the stock market takes considerably less hands-on work. When purchasing a property, there’s a good chance you’ll need to put in some sweat equity before you start renting or looking to sell the property as a flip. Do your research before you commit to your first property.
Get Outside Help
If you’re new to the real estate market, you likely don’t have all the same resources at your disposal as some other seasoned professionals. Do some research to find local real estate experts near you who know your preferred neighborhood well. They’re much more likely to have relevant resources specific to your area than anything you’ll find in a basic Google search. As many as 78% of recent buyers found their real estate agent to be a very useful information source, so don’t be afraid to ask for help when you need it.
Location, Location, Location
One of the few consistent truths when it comes to investing in real estate is that the location can make a world of difference. Not all neighborhoods and markets are created equal, and the difference between a worthwhile investment and an expensive mistake can be a matter of blocks. Be sure to check elements of the neighborhood that can be easy to overlook, like home ownership association fees or other local expenses. US homeowners paid approximately $88 billion in assessments toward community associations in 2016, and surprise fees like this can cut into your overall profits.
Keep Track Of The Market
While the real estate market has been performing especially well as of late, it’s important to keep track of the market both as a whole and for your specific neighborhood. The real estate market can shift rapidly and with little warning, so what might seem like a great investment today might not necessarily be tomorrow. Pay attention to where the hottest markets are, and know when it’s time to walk away from a sale or other potentially negative situation. Buying the right property at the wrong time can be just as damaging as buying the wrong property all together, so time your purchase according to the market as much as is possible.
Real estate investing can be incredibly profitable even for beginning investors. However, because of how complex the real estate market is, these tips can help you and give you the best chance to succeed as a newcomer to real estate investment. Ask for outside help, remember your location, and keep track of the overall market, and you’ll be well on your way to a successful career in real estate investment.
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