Investing in real estate properties is generally deemed as a safe and long term investment plan but most first time property investors sell it off within the first 5 years resulting in much less profit than anticipated. One of the main reasons for this failure is they fail to get proper investment property advice.
If you are looking for guidance for when you buy investment properties it is essential that you plan and research properly or you can also get professional advice. Speak to your accountant or financial planner. You can also get a lot of information from the web, get online and research for ideas, opinions, possibilities and concerns. Make sure you take notes so that you can refer to it when you finally start investing. Talk to family and friends who could provide you some vital information on the local scenario especially if they have or had properties investment.
A significant advice is you need to spend time and have patience when dealing with those properties. The process of buying the right property may be pretty long winding, try not to hurry through it as this is very critical. It is generally found that people are ready to spend more time to plan their annual holiday than planning their financial future and purchase.
Another reason why people sell off their property even before it has accumulated the desired profit is because they had purchased the wrong property. Ask first time investors why they had chosen that property and often the reply is – it’s close to where I live or local newspaper said it was a good investment spot or my wife or son liked the place or because it is the area they would like to live in after retirement. Emotionally these reasons are quite fine but if you are looking from an investment point of view you need to justify the purchase with more than that.
Investment property advice in this regard would be to check for areas where the rental demand is higher. Other vitals include excellent schooling, high employment, good transport system and finally demographics. Getting a big piece of land in a place where mostly singles live and work will hardly fetch you any returns. Similarly it is preferable not to buy 2 or more storey houses in suburbs where mostly senior citizens live.
The field of real estate investment is filled with ups and downs as does any other business segment. And if done right the returns you get will be worth all the wait and efforts. Be prepared for the long journey of a property investor and take the right advice to make it a profitable one.