subject: How To Make Money From Property Investment [print this page] If you want to become wealthy, let your money work for you! An eight-to-five job simply will not enable you to earn enough money to afford a luxurious lifestyle, except of course if you intend to bury yourself in debt. Many people have come to realise this now more than ever and have decided to put their money in property investment in the hopes of becoming rich.
This type of investment, also known as real estate investment, is made by buying a piece of property with the intention of using it to gain a profit. This property could be residential (house, duplex, apartment, or condominium unit) or commercial (office, building, or vacant lot). Property investment is undoubtedly a profitable venture but not every investor becomes successful at it. So, how does one make money from it?
Before embarking on this venture, ask yourself if you have what it takes to be an effective landlord. Not everyone is, so it is important that you know if you can be good at it or not. Do you have the time to constantly check the property? Do you have the 'people skills' needed to build rapport with tenants and potential tenants? If the answer is 'Yes' then that is great news; however, if you answered 'No' then it means you have to find someone who can manage the property for you, otherwise, you may have to consider other investment options.
Assuming that you possess the qualities needed of every landlord, you also need to understand some important things that would mean the difference between the success and failure of a real estate investment.
1. Know how to find a 'hot' property. This involves several aspects, such as location and price. You want to purchase a property that is strategically located. If you are targeting residential dwellers, a good location would be one that is near schools or business districts. In terms of price, it is of prime importance that you thoroughly check the market value of the property that you are considering before you sign into any agreement with the seller. Do not overpay otherwise you will probably never recoup your investment.
2. Consider long-term capital growth. When buying property, you should also think of how much it will be worth in the market in the next few years. Carefully assess if the area will become prime land in the next five to ten years. Doing so would mean that after some time, you can increase the rent or even resell it for so much more than the amount you bought it for. Investors could earn a lot if they consider capital growth prior to purchasing the property.
3. Build your network. There are other investors who are also doing what you are doing- investing in properties. Some have gained more success than others and you can get to know these people and learn from them. Your network is also very important because through them you can be informed of hot properties for sale or get recommendations for potential tenants who may be interested to lease your property
by: Lawrence White
welcome to Insurances.net (https://www.insurances.net)
