Investing in property is nothing new. People have always done it and still do it every day. Whether it involves buying real estate stocks, investing in REITs, flipping houses, investing in residential property, etc., there are always opportunities. However, there ARE people new to investing in property. So, if you’ve never done it before and are not sure where to begin, here are a few property investment tips for beginners:
Decide whether or not you have what it takes to be a good landlord or landlady. Don’t buy any house, condo, or apartment unless you want to go through all the trouble of finding reliable tenants. If you already have some property due to inheritance or any other reason, decide whether you should sell it, rent it, or hold on to it for the time being.
DON’T SPEND a bunch of money on real estate investment education. There are plenty of helpful free and low-cost resources, tutorials, guides, and various property investment tips for beginners that will help you better understand all of the choices, consider the location of the property, and the different types of real estate stocks and REITs.
Even if you want to try house flipping or investing in rental properties, it’s still a good idea to add a REIT investment to your portfolio – especially if it involves a sector (residential, commercial, industrial properties, etc.) that has much growth and return potential. In addition, this type of investment provides diversified real estate exposure with a relatively small amount of capital.
Property Investment Tips for Beginners About Profitability
When it comes to any property investment, whether residential or commercial, several factors determine the profitability. Some things, like renovation and remodeling, you have control over. Other things, like crime in the area, property taxes, schools, job opportunities, weather and climate, and the location overall, you don’t have control over. If you’ve yet to purchase any property, keep these factors in mind and research the area before spending any money.
Always consider the needs of the occupants when you are the landlord/landlady. This consideration is one of the most critical property investment tips for beginners, yet unfortunately overlooked. If the tenants are uncomfortable and unhappy, they won’t stay for very long. Therefore, you will always need to have some cash to handle things like repairs, water damage, plumbing issues, and other potential problems.
One good source for learning and receiving property investment tips for beginners is Motley Fool Millionacres. Motley Fool is one of the most well-known investment newsletters. Its Millionacres plan is designed to deliver key concepts straightforward and easy-to-understand way, without any jargon.