A house is a great Wealth creating asset. Experts believe buying a home is a fairly safe place to put your money, and home values generally tend to increase over time. But buying one house or property does not really make anyone an investor exactly. A really smart house investing is when you can invest strategically in multiple properties and gain fantastic returns over a period of time.
Smart property investment tips can not assure you a 100% risk-free investment. Yet it can definitely help you ditch the most common mistakes that lead aspiring investors to failure.
To turn your minimalist house investment into high income yielding property, you must adopt the SMART Motto.
S: Strategic Thinking
A smart investor always and forever relies upon strong and strategic planning. Hence, the first big step is a clear goal-setting process. In terms of pretty smart property investment, one shall always think with their minds and logic unlike others thinking with heart. So, gather as much intel as you can such as the track record of property price volatility rate, average yields/ROI, Loan approvals, availability of tenants, future developments, neighborhood, etc to make a perfect plan.
M: Management of risks wisely
Risks are an eternal part of any investment. Analyzing and Managing these probable risks is an intellectual move to consider while buying a property. Take good care of all the possible financial costs that one can incur and make a side reservation for that while planning itself. You might also want to take into consideration Council and water rates, insurance, land tax, maintenance costs, property management fees, advertising costs, etc.
A: investing Against the grain
Investing against the grain or trends might sound a bit fishy at times but it’s a smart strategy to apply.
This strategy simply implies that one should do inverse i.e buy when others are selling and sell when others are buying. This practice is performed in a lot of investment forms and states up to the mark in terms of smart property investment too. Instead of following the trends of the market, one should look at the value of the asset and the market’s perception of that asset, creating opportunities for you when something seems undervalued.
You must adhere to other investors as well prior to your investment and avoid following the flock to the marketing hype of overnight get-rich-quick property schemes.
R: Reviewing regularly
A smart investor does not get complacent.
They keep reviewing their investment portfolio and how their property is performing annually and keep a track of improvements and adjustments required to make it work full fledge. They always learn from their mistakes and try to make more profitable decisions by reading and attending webinars or seminars.
T: Teamwork makes things Work!
Delegating work has always been a proven step towards success. Teamwork helps you ease the process. Smart investors always know that they can not have it all handled by themselves single-handed. Hence, to make ultra Smart Real Estate Investments, Delegate your research and work and take a leap of faith in smart and intelligent investors and managers just like you. Make a strong team and build an exquisite empire!
IN NUTSHELL
One must look up to the following steps to ease up a property investment success :
- Decide if you’re ready to buy – If you ain’t convicted and clear enough then you may regret later.
- How much house you can afford? – Never roll out all your money while investing in the first phase. Always know your purchasing power and follow that only.
- Down payment – If you pre-calculate your budget, you might also have gathered intel on how much Down Payment your investment would require.
- Preapproval of Mortgage – Pre approvals are always important to avoid any further regulatory disasters.
- Finding the right real estate agent – Well! Real Estate investment isn’t always an easy task.Therefore, a brilliant Real Estate Agent can help you save from any losses.
- House hunting – Find the best and most profitable suburb to invest in based on the real time news, research and analyses.
- Make an offer on a house – Negotiate and make an appealing offer! Negotiation is a powerful tool to get the best price or deal of any property.
- Inspection and Appraisal – For making it a great decision, one must get a home inspection and appraisals done.
- Be patient getting your mortgage finalized – Property investment is a real deal of patience as the process takes a little longer than we expect. So, keep calm and get it finalized!
- Close the deal – After going through all the above steps, “Congratulations! It’s a deal” sounds magical.
AVOIDING THE MILLION DOLLAR MISTAKES
- House is not just a word it’s a feeling hence, a lot of investors buy a house following their hearts eventually ending up overcapitalization and incurring a loss.
- 90% failure is also a result of mediocre planning. Without planning you may end up taking the high road. Successful wealth creation through real estate requires you to set goals, determining where you want to end up, and then devise a cohesive plan to get there.
- Do not fit in the category of impulsive or procrastinating investor who either ends up taking action too soon or not taking action at all.
- There is no right time to invest in a property, indeed there is a right way to invest in property. By which we mean to suggest instead of researching WHEN TO INVEST, research about HOW TO INVEST?
- Property investment is all about patience as properties tend to provide you good ROI if kept for longer years. It’s a long-term race game. People always make the mistake of thinking they can become a millionaire overnight.
OUR RECOMMENDATION
Though there is no short road to success, the property road is well worth the scenery and pitfalls if you stick around long enough to get to the good stuff. Here is what we would like to suggest you:
- Seek all the information you can before taking your life-changing leap and adhere to all the advice you can have.
- Communicating and becoming a part of a community of prior investors in a particular area can definitely help you up there.
- Always remember if you are looking for short-term gain, it isn’t for you.
- A proper cost analysis may be an add-on advantage here.
We hope it was helpful! If you still have any doubts or if you have adopted these tips before then we would love to listen to all of them. Comment down below as to what else we can help you with!
