Real Estate for many is a reference to home. The place you start and finish your day, raise your family and go about your daily procedures. What I can tell you is that real estate is so much more.
Property is a source of wealth and when invested in can produce a stem of income. Buying a house or apartment and renting it out is slowly becoming the norm, using real estate as a side project and the second stream of income. With house prices going up the real estate frenzy is only just beginning.
Most people start small, a little apartment or a small two bedroom home. Every case is different and obviously depends on a home owner’s financial situation. Buy low, sell high, that is the ultimate goal. For investment, the key is not to buy luxury but to buy worth, buy something that has the capability of growth, be that in an up and coming suburb or an area of expansion.
It is important you do not get onto Google and type in “Cherry Creek Denver apartments” when searching for the perfect rental property. Find something more subdued and with more earning potential. Something that is luxurious will always be luxurious, but something unflattering can be transformed.
More often than not a 10% down payment must be used for a deposit so once again only look for properties which you can afford and as stated before “Cherry Creek Denver apartments,” are probably not in the right price range.
It is important not to limit your real estate, constantly look to grow your portfolio and buy in differing areas. Each decision is a business decision and cannot be treated with emotion like purchasing your family home.
The difference between buying an apartment or a home is another extremely important decision. When purchasing an apartment, it is integral to consider other properties in the building as competition. It may be harder to resell or rent out a unit in a building which has four other units up for sale. With a high availability and less demand price can be driven dramatically downwards.
House in comparison can only really be compared to other houses in the street or suburb. As trends show house sales are far less common, and demand is essentially a lot higher. The chances of another house being for sale in your street are rare and often only a few will be up at the same time in your entire suburb.
It is important to weigh up all these decisions when deciding to invest in real estate but rest assured it is purely business. Real estate portfolios are a very timely investment and can reap huge dividends if done smartly and strategically. It is important to make confident decisions and remain unattached.
Before investing your real cash invest in knowledge, learn the trade, the lingo, and the whole real estate process. Know your stuff so when that time comes you are in 100%.