Investing in real estate is one of the better options in today’s business climate. It is an excellent investment to offset inflation and taxes that affect other savings. Even during a recession, real estate will outperform stocks and bonds. People will always need a place to live and it is generally going to about supply and demand. Here are some tips for those interested in getting started:
Plan your goals
Figure out the long-term and short-term financial goals. There is a concept called “time vs money” and it basically means that the more you have of one, the less you need to the other. Do the numbers and see if you have the capital or the time needed to reach your goals.
This is a good subject to learn the basics before too much money is spent in the name of investment. Figure out what you want to learn and what questions need to be answered. Don’t buy stacks and stacks of books and not read them. Learn what you need to and move on.
Don’t buy the first property you see or like. Remember that this is an investment and not your future home. Don’t buy based on your preference. Instead, make sure the numbers and future plans for the area will contribute to achieving your goals. Don’t take too long either and get caught in analysis paralysis.
Use your own number and research when coming to a decision. Do not take the numbers provided by an agent at face value. Double check the financial analysis to make sure that it makes sense. If it seems too good to be true, it probably is.