Investing in real estate can be a great way to boost your income and provide a steady revenue stream. However, as with any investment, there are many pitfalls in the real estate market. You need to do your research before you put your hard-earned money at risk. Keep reading for some great advice.
Analyze the market before you invest in real estate. You want to take a close look at a group of properties, taking notes as well. You should look at prices, anticipated rents and repair budgets. This will help you figure out what the good investments are in that area.
Keep an accountant on speed dial. You can be aware of tax laws and current taxation; however, there are many variables to keep in mind. A good accountant, that understands and keeps abreast of tax laws, can be an invaluable asset. Your success with investing can be made or broken by your approach to taxes.
If you purchase a property and need to make repairs, be wary of any contractors who ask for money in advance. You should not have to pay before the work is done, and if you do, you run the risk of getting ripped off. At the very least, never pay the full amount ahead of time.
Never assume that property values are always going to rise. Sometimes, you will lose money, which could cost you a lot. Instead, you should look for property that offers quick cash flow boosts. The goal is to generate profit from the properties that you purchase.
See if there are all of the stores and schools that you'll need around the real estate that you're thinking of getting for your family. You don't want to move to an area where you're not near anywhere that you need to go to. It would cost you a lot in traveling expenses, so keep that in mind when you move anywhere.
Consider how much you can rent a property for when you're determining its value. Renting a home can make you a significant amount of money. When they move out or the lease is up, sell the home again to make a bigger gross profit than just a quick flip would have given you.
Stay away from deals that are too good to be true, especially with investors that you cannot trust or do not have a good reputation. It is important to stick with those who have a good reputation because getting ripped off in this business can cost you a lot of money.
Beware of buying single-family homes in a neighborhood that is full of rental property. Typically, a rental neighborhood is not a desirable location for buyers who want to raise a family. The value of single-family homes in this type of neighborhood will not likely go up very much because of their location.
Now that you have read this article, you should have a better understanding of the real estate game. Use the information that you have just read to make sure that you are able to avoid falling into common real estate traps. With this advice, you can realize a big return on your investment.
About Author: Michael Beattie
Michael Beattie is an experienced and highly innovative construction professional who has demonstrated technical expertise as Structure Designer and Construction Manager for over 20 years in Ontario Canada. Some of his most recent commercial projects in Ontario include:
- Construction Manager Southcore Financial Centre Toronto Development
- Construction Manager Delta Toronto, a next generation, 45-storey premium 4-star hotel.
- Construction Manager for the Art Gallery of Ontario—Transformation AGO project
- Construction Manager Oakville Trafalgar Memorial Hospital
Michael is highly regarded in the construction industry in Ontario Canada as a leader, with a proven track record of producing strong results with a high degree of integrity, dedication and leadership skills. Click here to read more articles from Michael Beattie Blog