Most common questions used to investigate
Are you looking for a steady stream of income from your real estate investment?
Do you have a good amount of cash for investment?
Are you prepared for the hidden costs that come with a real estate investment?
Do you have legal help?
Are you familiar with analyzing market-specific data?
Do you plan to take a home loan?
Common conclusions
Real-estate is a good choice to get a steady stream of income. You can rent your investment and the money that comes from it will provide steady revenue for you. That said, you'll have to watch over the rental agreements and other maintenance areas. This can be a bit of a hassle unless you want to hire a professional property management company to handle it for you.
Though real-estate is a great investment in terms of the returns, you need a good amount of cash to put down as down payment. Typically, people put in about 10 to 20% of the total value as down payment and borrow to make up for the rest. So, make sure you plan your finances well before you decide to take the plunge into real-estate investment.
Real-estate investment is not a one and done investment as there are many recurring expenses associated with it in the form of taxes, utilities, and possible repairs. You have to plan your finances accordingly and sometimes, you may also have to be ready to travel to your property location if needed. Besides, you also need insurance to keep your property safe. Though you can recover the utility costs from your renters, still you'll have to plan and provision some money for other contingencies associated with the property.
Before buying a property, you must research whether it is built on a legal place that doesn't belong to someone else. If you plan to buy land to build a structure, you'll have to look into factors such as liens on the place, road planning, growth of the neighborhood, and more. To make sense of it all, you need someone who knows the laws well.
You must know if the property you're buying is in an up and coming neighborhood that has the potential to grow and attract renters. This is an absolutely important factor for real-estate investors. For this, gather market data, analyze it, see for potential growth prospects in the chosen neighborhood, and take into account other pertinent factors before making this decision. For example, if a major company is planning to set up a manufacturing city in and around your neighborhood, it's a good place to invest as more people will get job opportunities, and eventually, would need a place to live. Such considerations are important.
Look for the prevailing interest rates to decide if this is a good time to borrow a home loan. If the rates are high, defer your investment, until the rates fall a bit or if you anticipate that the rates will come down soon.
It seems that you would benefit from investing in the stock market.
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