If you are planning on buying property for yourself or just as an investor, this is a good time to invest. Before you take the leap, here are a few things you should know.
Yes, the real estate market has changed but the good news is that property rates are increasing. If you buy a property, industry professionals recommend you buy something local. This way you can check on the property, find tenants, maintain the property and collect rents. You can choose to invest in another city but this can mean more expenses. You will have to hire a property management company to care for the property and find tenants and this can be expensive.
Partner With a Local Contractor
Maintaining real estate can be expensive. If you can find a contractor to work with you as a business partner, you can save a lot of money. This can work to your benefit if you flip the property or rent it out.
Buy To Rent
CT’s market is perfect for renting. Rental rates are increasing. Due to the economy, singles and the families have been moving about the country in search of better jobs. As a result, single family homes, condos, and apartments are in demand. If you can find small homes or an apartment building with single-family accommodation, you can make a neat profit.
Learn About The Market
Learn as much as possible about the current real estate market before you do anything. Buying property means taking a loan, calculating your mortgage payments, calculating expenses, losses and profits, choosing property types, etc. It’s not possible to know everything but you can learn and this is what you have to do. Attend local real estate training classes, SoCTREIA meetings, and talk to industry professionals, join online forums, etc. If possible, take basic math and accounting classes as well to help you deal with the financial part of investment.
Clear Exit Policy
No matter which kind of property you invest in, make sure you have a clear exit policy about the property you have purchased. That means planning for the future. What do you intend to do with the property five years down the line? Sell or hold? Plan accordingly and make sure your exit policy regarding the property is ready.
You can be a landlord or a flipper; plan your funding, choices, and profit/loss accordingly. If you do your legwork correctly, there is no reason why you cannot make a neat profit in the real estate market. Just make sure your objectives are clear and you stick to a clear plan. If you do so, there is nothing to worry about.