By Mashum Mollah
Contrary to popular belief, there are ways to make millions with real estate. It might seem impossible for some people, but there’s a truth behind the “become a millionaire with property” myth. When it comes to making money, real estate can be incredibly powerful. Just like with any form of investment, there are certain risks associated. Not everyone have the wisdom to turn $10,000 into $1 million. A lot of wanna-be investors buy property because they don’t want to have an empty bank account. That’s fine, but it’s literally impossible to make more without doing a little more digging into the market. Here are some core guidelines that will help you make the most of your investment.
Be patient
Before jumping in and spending all the money you have left on a property you know very little about, it’s best to take a step back. Analyze the pros and cons of investing in real estate, and keep in mind that it’s a long-term kind of investment that demands several years before it becomes profitable. Whatever you do, just make sure to take precaution measures. Being forced to sell brings along severe losses.
Keep your investment valuable
One of the core benefits of real estate is that you can always make it more valuable than it already is. Even the most unappealing properties have potential. However, you need a budget for restoration if your goal is to buy and sell, or buy and flip. There’s one more thing you have to take into consideration: taxes. In the real estate environment, it’s fundamental that you become tax efficient. To make sure your tax bill doesn’t go up all you have to do is consult with a specialist in the branche. Further advice on how to make the most of your capital growth is more than recommended.
Choose your location wisely
Buying property to invest is not that easy. If you’re new to the market and your goal is to make that first million dollars, it’s very important that you choose your location wisely. Never invest in real estate that seems too good to be true. Before spending money, have a target audience in mind. Let’s assume that you want to buy homes in the suburbs. Are there any good schools in the area? Is the neighborhood safe? Are there grocery shops and pharmacies that you can get without a car? These are core aspects you need to have in mind, so that you can build demand and have people “fight” for your investment.
Look for trustworthy partners
Unless you’re a financial guru with a Ph.D in Law and advanced skills, you will have to partner with a professional to help you build your investment portfolio. Choose someone with experience and ethics. Also, you will need builders you can depend on good lawyers and honest accountants. Your team will help you become a real estate mogul.
Assess mortgage rates
You should be hunting for low mortgage rates to have a real shot at making $1 million from $100,000. Contrary to popular belief, it’s not that easy to triple an initial investment. Here’s one solution to what you can do to make a good profit. Buy 8 properties, at $100,000 each. Use a buy-to-let mortgage of 75%, and make a down payment of $25,000. Be smart when investing, and focus on properties situated in neighbourhoods with potential. At the other end of the spectrum, you shouldn’t ignore suburbs that don’t look just as good as upscale areas.
Assess property investment funds
As far as real estate is concerned, there’s nothing better than investing and watching your investment grow without moving a muscle. You might think capital growth doesn’t have value. But if you’re smart about it and you make sensible decision, you’ll only have to gain. Big time!
Last but not least, we should definitely mention that buying property and making good money from your investment shouldn’t be limited to location. You can always go overseas and consider property investment in Turkey, France, Spain, etc. Be careful when making decisions, and have someone you can trust by your side to help you make the best decisions.
