Real estate has always been a popular choice for investors looking for long- term assets to add to their portfolio. Although the housing market has fluctuated over the last decade, it’s still a good area of investment for veteran agents. Beginners looking to get their feet wet in the industry must first learn the basics before they end up losing all of their cash in one place.
Investing in property usually means two things : house sales, which involves purchasing units and properties and selling them at a profit ; and house rentals, which involves purchasing units and renting them out for a monthly profit. Any of these two will require some serious research beforehand, usually months or years before the actual sale.
First, the interested investor must look at the entire neighborhood’s market price. It also wouldn’t hurt to assess the surrounding area’s market prices. When he has a particular piece of property in mind, he has to estimate the cost of renovations and upgrades. There are also legal fees which can be quite expensive depending on the area.
Once the paperwork has been done, it’s time to advertise the property. A lot of rookies quite after only a few months because they think their properties should have been sold immediately after the first marketing blitz. Real estate investors should realize that in an industry with long- term returns, the waiting times can be long- term as well.
