In order to build Real Estate wealth, you have to start investing when you are young. Below are a few things you should know when investing in Real Estate.
Local Market Research
No matter what Real Estate will always be local. It’s not always about how good of a price you can buy a property. Due diligence is necessary so to make sure you are insuring that you have considered the locations desirability. Ask yourself these questions: What area are you targeting?
What makes it a desirable area?
How has the Real Estate in the area held its value? If you plan
on renting make sure its in an area where there is a demand for rentals. You also need a Real Estate agent on your side who knows the market suggest the right neighborhoods for you.
Fair Market Value?
When investing in Real Estate, you need to purchase a good property at a fair market value, especially if this is your first time investing. If the property you want to invest in is at less than fair market value this is even better, but doesn’t ensure a solid investment unless you have done your local market research.
Managing Your Investment
When investing in a property, you must keep maintenance on your properties. It needs to stay in good working condition. This will be all the more beneficial when it comes time to selling your property. Maintain things like changing filters for the AC regularly, keeping major appliances in good working condition, keep track of plumbing and any damage. Staying on top of maintenance any time something goes wrong instead of letting them fester will cost you less money.
Why invest when you are young?
Because if will give you a sense of security, financial security
that is. When you begin building Real Estate ownership beyond your own home, this is building you wealth. Not having to worry about where your next meal comes from. It will really make life a lot easier.
