I can’t over overemphasize that. Therefore look for a good location that has a high population, many developments, and a lot of basic amenities such as hospitals, parks, bus/rail, sports and many others.
That’s because people are always prepared to pay to live in those locations.
Without this procedure, it would be difficult to tell the property’s cost, so consider appraisal to know the exact value and cost of the investment.
Hire a Qualified Property Manager
Leveraging means investing in a property to create opportunities for other people to pay your loan. They are professional enough to put things under control for property owners and tenants. These experts may also offer you advice on managing your tenants and increasing the value of your property. Moreover, your property manager may explain your responsibilities and ownership rights.
If there are maintenance issues, your property manager will call upon repairers on your behalf. It includes two types of policies – liability protection and property policy.
On the other hand, you can leverage your investment by putting down a small deposit into your investment.
Leverage gives you the ability to control a large asset with only a small amount of money. In real estate investing terms, this would be the ability to buy a property with only a small deposit.
Depending on your personal circumstances, you could buy a property with as little as a 5-10% deposit.
However, most lenders require a 20% deposit to avoid any lenders mortgage insurance. The belief of the lenders is that property prices are unlikely to fall more than 20%, so they can feel confident lending this amount of money for real estate investment purposes.
What that means is that with a small deposit of only 20%, an investor can control the entire asset and more importantly, gets to benefit from the capital growth and cash flows on the 100% of the value of the property.
In practice, this means the return you receive on your cash is far greater than many other asset classes, like stocks because of the impact that leverage has.
Alternative property investment
In recent years there has been a sharp increase in these types of investments and investors look for more opportunities. Some of the types of alternative investments include multi-unit dwellings such as student accommodation. Other alternative property investments focus on opportunities in the commercial real estate sector such as child care centres or petrol stations, which generally have higher yields than residential property.
Strategies
The beauty of real estate investment is that there are so many different ways to create wealth through various property investment strategies.
These will be your daily bread and butter. Select the ones that are comfortable for you. Add more as you progress in your real estate investing.
Below are a few strategies for your consumption:
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