Buying a property – tips to make it a less stressful process
As opposite to investing in bonds or stocks, buying property can be a lot more challenging. But usually that happens when you don’t know what you’re doing. Many investors have high chances of making a good profit in this niche; but in order to make money selling property you need to know the ins and outs of the market. It is extremely important to consult with a realtor before getting started. Whether you’re a newbie or a professional, only a skilled real estate agent can help you land the best deals. There’s an old saying that claims that investing in real estate is all about location, and many investors today adhere to this motto.
Investing in rentals is extremely common these days; it can also be a profitable way of making money with property. The owner of the property is also the landlord who leases but is in charge of paying maintenance costs and taxes. Ideally, a smart landlord charges an amount that covers all these expenses. To make yourself a good profit per month, you need to adhere to a few strategies. First of all, be patient and try not to get greedy. Rent your property to reliable tenants and make sure to sign a contract; this way you protect yourself for unnecessary expenses – damaged furniture, ruined fixtures, etc.
Second, to make your property high-valued you might want to spend some cash on interior décor. Some tenants are extremely picky, not to mention that everyone will want to pay a little extra to live comfortably. And third, be a responsible landlord and help your tenants. Fix damaged appliances on time and pay them regular visits to make sure everything is in order. In the long term this will pay off greatly and when your tenants leave you won’t have to spend a lot of cash to redecorate and redesign the place.
Opt for property investment groups
Investing in real estate can be extremely profitable. However, many people are having issues deciding on the right type of investment for them. If you want to invest but don’t want to buy and become a landlord, you can opt for real estate investment groups. Basically, you’ll be dealing with a company in charge of purchasing and building a set of condos or apartments. Then, that company will permit an investor to join the group and make a buy. You can easily own one or more condos. The biggest advantage of this form of investment is that the building company handles maintenance, tenant interviews and leases. You won’t have to move a muscle, and at the end of the month you’ll receive a rent but without a small percentage which goes to the construction firm.
Real estate trading
This form of investing in property is meant for experienced traders with extensive experience in the niche. Unlike buy-and-rent landlords, traders a whole different breed; basically, they buy properties only to hold them for awhile (3-4 months). Then they put them on the market with the purpose to sell them at a higher price. This strategy is additionally known as “the flipping technique” and it is usually based on buying property that is either undervalued or highly demanded. Real flippers don’t spend anything extra on improvements. However, only the most experienced and versatile investors can do this. Sound sales abilities are fundamental when choosing this form of real estate investment.
Buying property is one of the oldest and safest ways of diversifying your portfolio and making a good profit. However, one should make sensible decisions when choosing this investment approach. A hassle free form of buying property for cash is REIT – real estate investment trust. A REIT shapes up when a company or trust uses the money of an investor to buy properties. Furthermore, the company is compelled to pay out up to 90% of the profit (as dividends) to maintain a REIT status and avid corporate income taxes.
REITs can be extremely profitable as an investment form. They permit investors to buy all kinds of properties not just apartments and condos; in this category we also have office buildings or malls which are liquid and particularly profitable in the long term.
By Davis Miller and PropertyTurkey.com!