Beginner Investors Is Financial Risk Necessary for Successful Real Estate Investing? by Diane H. Wong November 4, 2019October 24, 2019 by Diane H. Wong November 4, 2019October 24, 2019 Many people are speculating that now is the worst time to invest in real estate. There are heightened fears of a recession, the global credit crunch means that people are tightening their belts, and the cost of living has increased substantially. However, despite these concerns, real estate continues to be a solid investment. People will always need a place to live for a variety of reasons including the increasing demands of immigration, divorce rates, people seeking greater independence at a younger age, students needing somewhere to live close to their place of study, and the high cost of getting on the property ladder. This is a great opportunity, therefore, to supply real estate to meet the needs of the rental market. Real estate investing during a recession is just as easy as investing during a period of economic growth. Property prices are much lower and there tend to be a number of cheap foreclosure properties on the market. This means that there is a real opportunity to make money in real estate but the strategy during a recession should be seen as a long-term investment rather than relying on short-term “flipping” investments. “Flipping” which means buying a property, carrying out renovations and selling it quickly for a profit (usually within a 3 – 18 month period) was a very easy and profitable way of making money a couple of years ago but is a strategy which is full of holes in today’s market. Fewer people are buying property today and those that are buying are paying much less than the asking price and you could find that you actually lose money rather than make any profit. Real estate investing requires a long-term view (about 2 – 5 years), because any properties that you invest in now whilst prices are cheaper, will see a steady increase in their value over time in the coming months and years (real estate appreciation). So, what are the factors you should look out for when investing in property over the long-term in order to minimize financial risk? Decide on Your Strategy If you want to appeal to young professionals, one or two-bedroom apartments are ideal in an area close to bars and nightclubs, and to transport links to get them quickly to work. If your real estate investing strategy is to provide homes to families, a 3-bedroom house with garage space, close to schools, parks, and supermarkets may be ideal. Deciding your strategy beforehand will make the process of investing much easier. Decide Where to Invest Is the real estate investment in an up-and-coming, highly desirable area? There must be accessible amenities nearby such as shops, bars, schools, and supermarkets. Notice whether there is an oversupply of newly built apartments or houses in the area which are empty or taking a long time to sell or rent out. Do Your Research Learn how to value property. What are other properties selling and renting for in the area you’re interested in? Speak to estate agents (but don’t rely on them) to get the best possible understanding of the real estate market in the area. Do the investments you are considering add up? Research, research and research again and carry out your own due diligence in order to make sure you are investing in the right property, in the right area at the right time. Rental Property & Equity This is the key to real estate investing over the long-term. Rental properties can generate passive income almost immediately, although this will probably only be a small amount of profit each month. Although you can’t expect to get rich on the profits of one property, five or more investment properties all bringing in a small amount of profit each month will soon add up to a comfortable income. This profit comes in handy when it comes to maintenance repairs for each property or to cover periods when a rental property may be empty. The real riches come from building equity over the long-term which you can release over time to enable you to buy additional investment properties. Related: How to Buy Multiple Rental Properties in a Single Year Remember, This Is a Business You should treat your real estate investing as a business, which means you should not get attached to the investment property, which is quite common, especially amongst first-time real estate investors! It’s a mistake to become too personally involved in your property. You should not consider your own personal requirements, but those of the future inhabitants. The real estate market is full of people who are driven by greed and fear. There were people who were jumping in with both feet during the real estate boom times because they wanted to get rich quick, but they lost a great deal of money and their investments during the leaner times because they hadn’t carried out the necessary research and due diligence needed to be successful whatever the climate. Taking the long-term view in real estate investment will ensure that you are successful in periods of recession as well as during periods of growth. This article has been contributed by Diane H. Wong. Start Your Investment Property Search! START FREE TRIAL EquityGuest BlogsLocationLong-Term StrategyRental Strategies 0 FacebookTwitterGoogle +PinterestLinkedin Diane H. Wong Diane H Wong is a writer for write my essay company. She worked as a rent specialist for more than 5 years. It helped her estimate and analyze the business sphere better. 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Real Estate Investment: How Professional Help Can Let You Invest Effortlessly The Secrets of Effective Real Estate Networking 1 Comment ArdelaPolinski February 22, 2020 - 8:34 pm El sector monetario, que incluye los sectores financiero como pagar rapicredit es un mercado específico con su facturación e ingresos. El mercado financiero mundial proporciona servicios financieros a la sociedad, suministrándole dinero en el momento adecuado y en el lugar correcto. En otras palabras, el dinero es un producto específico en el mercado financiero. El dinero circula como una mercancía en sectores del mercado financiero mundial como el crédito, los valores, las divisas y los seguros. Reply Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.