Some people decide to let their money stay idle in the bank with low interest rates. Others buy property, and grow their wealth significantly with Real Estate Investment. Which type of person are you?
Lets look at some of the key factors in choosing right investment property.
If you have been working for some time, hopefully you will have accumulated some form of savings, and of course the first mistake we want to avoid is letting the money stay idle.
There are many ways to work your money hard, and one approach that has proved successful for many of the worlds financially independent and wealthy people is through Real Estate Investment.
TOP 5 Reasons to choose Real Estate Investment:
- A well chosen property can appreciate in value over a shorter period of time, giving capital growth and profit when sold.
- Real Estate plays a critical role in advancing towards financial freedom, for example bringing an income through rent. Rental income can also be reinvested in to the property bringing debt and monthly mortgage payments down, and cash or 'equity' in the property up.
- Real Estate has less volatility as compared to stocks and shares, hence lower risk.
- Simple methodologies are involved, i.e: Finding the right property, funding that property, and understanding the rate of return.
- Unlike companies and the stock market, people will always need a place to live and a roof over our heads. Its one of the very basic human needs. Whilst we don't know how a company is going to perform over the next 2, 3 or 5 years, there will always be a demand for property.
Finding the right property!
Given the amount of properties available in the market, we want to choose the right property, one that will rise in price and can be easily rented out, then resold when desired at a good price.
Hence, to choose the right properties, we consider the following critical factors.
Real Estate Factor (1) Place - Location, location, location!
Location is also the key factor in looking out for a suitable property. Ideally, it should be near common amenities and facilities such as schools, markets, bus (and train) interchanges, shopping centres, and parks. If you can find a location with all these plus factors, you are in luck, because such places tend to grow in value fast, and hence proved profitable for you in a short time.
Real Estate Factor (2) People - Who are you targeting?
Is your target young professionals, families, couples or top executives? Make sure that you source the style of property and furnish it appropriately for your market's needs. For example a small high quality apartment might suit a young professional but not a family who would appreciate more space. Nonetheless, it is all up to personal decisions. You may desire a place which is quieter and away from the urban chaos, but that could compromise on some of the accessibility and conveniences which could in turn have an impact on your property future value.
Real Estate Factor (3) Potential - Size and Amenities:
The common phrase "Size does matter" is especially true in real estate, which is the first impression when a potential tenant or buyer steps into your house.
Besides considering space for the living rooms, and bedrooms, extra spaces for storage, car parking spaces, and access to swimming pools or gyms are often a plus point.