With the economy in the United States and other parts of the world still in a state of flux, it can sometimes be hard to know where to invest your money in. There is still one investment that is still surviving, despite the bad press it has received over recent years due to reckless lending, and that is the real estate market.
At the end of the day, everyone needs a place to call home, so if you have the cash, you may as well take advantage of low real estate prices and start building up an investment portfolio! If you have thought about investing in real estate before but haven’t really thought about how to go about it, then you should check out these awesome secrets to becoming a successful real estate investor!
This is perhaps the most important factor that you should be considering when looking for property to invest your cash in. When you check out some properties to invest in, one of the key points when determining the value of a property is its location.
For example, property situated in a cul-de-sac is inherently safer for children than property located off a busy main road, and so the cul-de-sac property values will be higher.
Don’t Splash Out On Renovations
The reason why you want to invest in property is simple – because you want to make some money. If you buy an investment property and spend a fortune on renovating, this will eat into your profit.
White paint is cheaper to use on walls than expensive premium-branded paint colors, and a basic yet hardwearing carpet will do the job just fine. Stick with contemporary, timeless styles, and you will do just fine.
Be Prepared To Put Down A Big Down Payment
It is no surprise that banks are somewhat cautious over whom they lend money to these days, so if you are going to be investing in real estate, they will require you to put down a 25% to 30% down payment.
The exception to this rule is if you are going to live in one of the units you buy, in which case you are considered to be an owner-occupier and can put down a much smaller down payment from as little as 3.5%.
Real Estate Investing Is A Long-Term Investment
You can usually receive more tax benefits and incentives if you have long-term investments, so can easily ride out any periods of time where the market might drop. Also, the passive income you receive from your real estate investments is a great way to supplement the money you earn from your normal job.
Screen Potential Tenants
The last thing you want to do is rent your property out to problem tenants! Always obtain a credit report on potential tenants – after all, you want to make sure that the person or group of people that rent your property will a) take care of it, and b) pay your rent on time.
Buy From A Reputable Realtor
For extra peace of mind, it is always best to buy properties from an established realtor. There are many homes & real estate for sale in Philadelphia, PA as well as other parts of the USA, which are sold by reputable realtors, so coming across one you can work with, and trust won’t be a difficult task.