Looking to make extra money on the side with a property, but not quite sure how? Here are our top real estate investment tips for beginners…
Real estate investing is the number one wealth builder. Unlike stocks and other collective investment strategies, real estate tends to have more stability and rarely depreciates. If you are still weighing your options on whether to get into this industry, here are some great real estate investment tips for beginners…
Do your homework
First in our list of real estate investment tips for beginners is to acquire as much knowledge as possible regarding properties, the market and even alternative ways of investing. There are plenty of books you can read, attend seminars and get a few mentors to walk with you on this journey. However, nothing beats getting your hands dirty by walking into the neighbourhood and learning about the market firsthand. You might need to see a lot of property just for learning before you find one that is worth your time and money. It could be that you want to move abroad such as to the US which will need a bit more planning. There are websites dedicated for abroad properties so wy not try it now and have a look to see if there is anything suitable.
Have a plan
The only way to accomplish something is to have an idea of how you are going to go about it. In this case, you need to identify what your short term and long-term goals are. Determine exactly how much you want to spend on the investment and where it will come from. Use the mortgage calculator online resource if you’re going to go that route. Have realistic goals on what you want from the investment and in what time frame. Writing down your plan makes it easy to follow through.
Learn to sacrifice
The only way to start investing is to sacrifice a lot. Most people always give excuses that they don’t have enough money to invest because they spend 100% of their income. You have to sacrifice some luxuries like having multiple family cars, going out, vacations and those expensive shopping sprees. Every coin saved can go a long way towards investment.
Start small
If people waited until they had a million pounds to start investing, not many people would be rich. The best thing is to start where you are with the little you have. For most people, single-family home is all they can afford, so begin there. If you can’t afford a home, you can join a real estate investment trust (REIT). REIT will allow you to get into real estate business without actually purchasing anything on your own. The trust owns and manages buildings, and they pay their investors dividends. It’s a really handy one in our list of real estate investment tips for beginners.
Be resolved
There are two kinds of people in this world; ones who spend a lot of time learning about things but never implements them and ones who takes a leap of faith and starts to apply what they are learning along the way. The real estate industry is not easy, and you will be bombarded with a lot of information, myths and scary stuff. Granted, you will make mistakes and fall on your face, but you will also learn and get better.
Wouldn’t it be amazing if ten years down the line you looked at your portfolio and realized you could retire comfortably? That can only happen if you start somewhere and follow the right steps. Take note of these real estate investment tips for beginners and you’ll be well on your way.
