Although there are numerous examples and ‘rags-to-riches’ stories of people who have earned themselves a fortune with real estate investment, real estate, like every other business, has many risks associated with it. It is a tricky business with a lot of ins and outs that can be difficult to navigate and being informed is the key to avoid mistakes.
At a time when the real estate industry is booming and at its lucrative best, it is no surprise that people are clamouring to find a good property – whether for commercial or residential purposes. The fact that technology has also levelled the field by introducing virtual real estate tours which has further pushed the boundaries of real estate marketing, making the sector more profitable – both for investors and sellers.
Experts say that real estate has emerged as one of the safest investment options during the pandemic. It’s no secret that investment in real estate comes with the potential to grow in value over time, and the investment can also be utilized to earn regular rental income. Having said that, nothing comes easy and the same goes for real estate investment as well. If you are planning to make a real estate investment in Beverly Hills then you should get in touch with a professional real estate agent in Beverly Hills like Marc Anthony Estates.
Hence, there are certain things to keep in mind before you put your money on property, especially if you’re a beginner. Take a look!
- Educate Yourself
This is the first step to investment success. If you’re armed with knowledge, nothing can come between you and success. Knowledge is the key that can take you from being a ‘good’ investor to a ‘great’ investor. What is going to separate you from the pack is how much research you put into your investments and how often. Markets are always changing, new trends are always beginning, old trends are always reversing. If you dedicate yourself to researching and refining your investment strategies and you remain focused on investing in regions where economic growth is booming, you will reap the benefits of a stable appreciation in the real estate agency Las Vegas.
- Understand the Ways to Profit from Real Estate Investment
Cash flow is an important factor when it comes to selecting real estate investments, but there are other benefits to owning real estate that can influence the properties you choose. Typically, investors weigh the amount of profit they’ll earn from fixing up investment properties and selling them – known as flipping – versus renting them out. They also weigh their annual income against the properties’ inherent decreasing values to determine how much they owe in taxes.
- Keep a Long-Term Perspective
Always have a long-term perspective, while choosing a location. For instance, if your investment is in a residential space, proximity to amenities like bus stops, malls, hospital, schools, should be looked at, as that will either benefit your family or increase your prospects of rental income. However, if you are investing in commercial spaces, proximity to airports, ports, warehouses, etc. will be beneficial. Experts suggest the location of a property is vital for the re-sale value that the investor will receive in the future.
- Know the Pitfalls of Leverage
Buying property with little or no down payment is an appealing prospect, but there are major pitfalls to this strategy. Leverage is borrowing because an investor does not have on enough cash available to acquire an asset. Mortgages are ways investors can acquire investment properties with little or no cash. Some real estate investors use non-bank financing as leverage to buy property. Though leverage can increase the amount of property an investor can purchase, savvy investors don’t use debt without understanding the risks.
- Select a Low-Cost Home as Your First Investment
Even if you are ready to invest big bucks in your first investment property, it is always a good idea to go for properties that lie in the lower- to mid-range price brackets. Don’t forget, you will need to spend more money on the renovation of the house before renting or selling it. Furthermore, since it is your first investment property, keeping your investment as low as possible will help you stay in the safe zone. Even if you don’t hit the expected profits, you won’t risk losing too much on it.
Like every other business, investing in real estate can go either way: You could earn a good chunk of money, or it might turn into a disastrous experience. Following these 5 tips before you invest in real estate will ensure that you acquire a great property.
Meanwhile, you can also check out properties and do your research via virtual site visits via real estate virtual tour apps like Proxgy. The Proxgy app allows potential buyers and renters to enjoy an immersive experience that shuts out the rest of the physical world. It saves time for both the realtor and the client and is far more cost-effective than taking the customer to check out multiple properties.
All you need to do is log on to the Proxgy user app, click on Proxgy for Real Estate and your virtual avatar will be assigned to you to take you on your own personal virtual property visit.
So, what are you waiting for? Book your Proxgy now!