In general, real estate is one of the best investment options out there. Unlike most other types of assets, real estate property appreciates in value over time, making it a great long term investment.
Additionally, it provides the owner with a great opportunity to make some passive income in the case of rental property. It can actually be part of your long-term strategy to create wealth.
But then again, it is of great essence to approach real estate investing, knowing that you’re ready to roll with the punches that come along the way. You will need to plan carefully, strategize, and set aside a considerable amount of money for your investment.
You will also need to time your purchases right, know where and when to invest. This is mostly because purchasing a piece of land an apartment complex, a home or any real property is no joke. It is an expensive affair, not forgetting that your property will still need regular maintenance, all from your pocket.
But if there’s one thing that bothers many beginners in real estate investment, you can call it timing. So when should you invest in a real estate property?
The Best Time to Start is now
You may not have the means, finances, and resources ready to make you’re a huge purchase on real property like tomorrow, but it all has to start somewhere.
Most potential investors end up abandoning their dream even before it begins, just from the thought that real property is expensive and they don’t have enough capital. The same people end up regretting a few years down the line when they see that a piece of land they had eyed has already been developed by another person or their ideas have been used by another hungry investor.
The best investors in real estate are not procrastinators; they are just good planners and strategists who are committed to achieving their ambitions. The best time to start making your investment plans is now!
Time It Right to Buy Low
One of the best ways to make good returns from your real estate investments is to buy and sell the property. However, it can sometimes be quite a risky venture if you don’t do your math right when it comes to timing. This kind of real estate investment is similar to currency trading, where the main idea is to buy low and sell high.
For instance, you could buy used property from owners who need quick financial relief or whose property has been dilapidated and they want to let it go. You can then rehabilitate or renovate such property and put it back on the market for a considerable amount of profits.
According to Jack Gibson from the High Return Real Estate Investment Group, when investing in a rental property it is important to make repairs and have the home inspected for correct functionality.
Moreover, timing is also crucial when using this strategy, plus you’ll have to have your finances in order because these opportunities are actually available for a limited period of time. Another great strategy is to do your timing right and purchase during low seasons such as winter when the demand is low, and so are the prices.
Additionally, buying at certain times such as at the end of the year when most property sellers motivated to sell their property for tax benefits could also grant you some advantages as an investor.
You could also look into listings to identify property that has been on the market for a long time. This fact alone gives you a better negotiation ground since it could be than the price for such property is overstated or it has issues that make it less appealing to potential buyers.
When You Can Afford It
According to most financial experts, borrowing money to buy real property is not always the best idea. But let’s be honest, real estate assets are expensive and purchasing one in cash may not always be possible, especially for beginners in this industry.
However, in case you have to take a loan, it’s always best to make sure you can afford the mortgage payments, even when and if the property won’t earn you rental income.
You don’t want to put a financial burden on yourself in the future, all in the name of investing or building wealth. If times get tough, the investment could end up running your credit reputation and even costing you more money when troubles such as foreclosure come knocking on your door.
When financing your investment through a mortgage loan, you may also want to time when the mortgage rates are more favorable.
In addition to the above pointers, it’s best to make your investment or purchase only after you’ve thoroughly done your homework.
If you’re eyeing a particular property, be sure to research it carefully, especially if you plan to sell it later. Do a land search; find out whether the area is expecting infrastructure developments soon, whether the neighborhood is growing, and other factors that may affect pricing in the future.
Only make your investment decision after you’ve researched the property, in and out.