Is Real Estate investing right for you?

Even once you have decided to invest in real estate it is still important that you can afford it. Many people make the mistake of trying so desperately to purchase a real estate investment property that they use all of their available finances to do so. This not only means that they can then struggle to pay for initial maintenance, unforeseen legal fees or difficulty to find a tenant but also that more often than not, they purchase a property that is not actually as valuable as they think and turns out to be a poor investment.

Investing in property in not simply a case of choosing the first property you come across and buying it. Amongst other things you need to have the time to do a proper due diligence on the property, make sure that the property is in the correct condition, ensure that there is a strong enough rental market for you to find a tenant and be able to find a tenant for the property. Even after choosing and purchasing the property a lot of time is required to find tenants, deal with their requests and manage the ongoing running of the property, including repairs and emergencies.

Not only is it important to do your research on the property you want to invest in but also to understand about the location of the property. Not only is it important to check that there is strong rental demand and good rental prices in the area but you should also do due diligence on any local developments, government infrastructure projects that could affect the value of your investment, positively or negatively.

Almost every first time real estate investor experiences costs that they did not anticipate. Make sure that you have as much information as you possibly can about the property, how you will manage it and what are the actual closing costs of the purchase. Will you need to bring in a lawyer, what real estate taxes will you need to pay, will there be association costs, will you need to use an accountant, do you need a property manager to run your investment?

Whilst you will begin receiving a positive return from your rental after only a couple of months do you have the patience to stay in for the long term. Real estate is not an investment that you can exit whenever you want, you need to be able to maintain your position for some time. Therefore if you are looking for an investment that you want to be able to liquidate immediately then real estate probably is not the best option.

If today you can’t answer the questions above positively but are still looking to take advantage of real estate investing then why not consider an investment platform such as Bricksave. It allows anyone to benefit from instant real estate returns in dollars and removes many of the risks or hurdles associated to investing in real estate.