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Wednesday, June 8, 2016

Tips to Consider When Investing in Properties


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Everyone wants to have a property they can call their own. Some are lucky and hard working enough to be able to attain one at such a young age, others have to go overseas to be able to save funds enough to acquire one. Others on the other hand seeks helps from banking loans and in-house financing to secure a home for themselves. There are many ways on how you can acquire a property. However, are you really aware of the important things to consider when investing in one?

Let us say you have a decent amount of money in the bank, and you are thinking of what better way to make use of it. Light bulb moment – Investment! Investment in properties in particular.

Investment, in its strictest sense, is the act of allocating your resources (money, time, etc.) with the expectation of benefit in the future. The idea of investing in properties may seem too big to grasp right now, as it is way more complicated than investing in stocks/ bonds. Hence, we shall give you the following tips that can help you understand properties as an investment. And later on, you can figure out if you are ready for it.

Property investment is a journey. Investing in properties does not end after paying for it. Your investment journey has just begun and you have to consider the mortgage, real estate taxes, and maintenance costs, to name a few. If you are not ready to invest in a home you can call your own, renting a property might be a wiser option as you build your money to acquire one you can call your own.

Patience is a virtue. Property investment is not a short term goal. Return of investment in properties may take more time than other investment vehicles, so you have to be really sure before jumping into the bandwagon. The usual and most common strategy here is to buy a property, have it rented to cover the majority of expenses. When the mortgage has been paid, majority of the rent now becomes your profit, and your property may have also appreciated in value over the course of the mortgage.

Know your options. Property investment is not just about buying of the property and waiting for its value to appreciate. There are plenty of options to choose from. Real estate investment groups, real estate trading, and real estate investment trust are just a few of these options so make sure you really understand what you are getting into.

As to any investment, there is much potential in property investment, but it does not always equate to a gain. The key here is to know what you want and learn how to get it thru careful and wise decisions. Always take calculated risks. 
Read, do your own research. Understand the concepts, strategies and the process or better yet, ask the experts. 

10 comments:

  1. I think anyone who wants to invest in something including properties should take seminars on financial literacy first. Why? To avoid mishandling income sources and funds - or make mistakes in over exposing one's self.

    Once properly educated, then investing in properties can begin by learning the due diligence required and asking people questions, all to learn the how and why.

    http://www.amazinglifedaily.com

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  2. November 2014, my partner and I made a big decision by buying one unit of a row house in a subdivision near where we currently live. We decided to invest in a simple house first before saving up for marriage. We didn't want to get married and still live with our parents. So yea, it was a big but correct decision for us. :)

    xx, Ella | Wandering Ella

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  3. First time to hear about property investment. I guess this is the term you use when you buy and sell houses/properties. I do know about stocks so this might be just the same. Difference is, stocks are just plain papers while property investments both have papers and the real thing.

    I do agree that before you buy any property, you have to weigh the pros and cons of getting the place.

    http://thetopknotters.com

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  4. This is a very important topic. Patience and knowing your options is a must. My father loves investing in real estate and I have learnt these from him - patience, research, analysis and cost benefit analysis. You not only see how good the property is but also evaluate the atleast 1 km worth of area around it

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  5. I guess one should be financially educated first s/he is not before investing. Investment is such a huge step so better know every detail first and be careful and knowledgable as much as possible.

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  6. This is great and timely advice. I'm expecting to invest in property soon. As time passes by it gets more expensive. Might as well save on rent

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  7. Property investment sounds important and complicated. Sadly I don't have any money to invest and I rent my apartment. But someday I might want to own!

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  8. I agree with your list. One should not be pressured as buying a property should be a wise move and decision and not just some sort of joing the bandwagon.

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  9. At a young im terrified of this thing called investment. All i ever do is save but doesn't know exactly if i will be able to buy a property for myself. Though yes, a property is one good investment because sometimes its value gets higher over time.

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  10. It is really important to know what are the dos and don'ts when it comes to investing properties. Investing is no joke and it should be taken seriously and wisely at the same time!

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A graduate of Civil Engineering but a writer by heart was the main reason why I figured out that the corporate life was not for me. I enjoyed being at home, far from the competitive atmosphere of a typical 8-hour job. I hated the idea of extending work hours at the office or bringing work at home. I cringe about the idea of having to prioritize work over my family and living. Luckily, i managed to break free from the corporate world after seven grueling years. Although I must say that I have learned a lot both personally and professionally from my office job, I would never see myself turning back after being able to achieve my dream of being at home and working online. As I try to reach my first million while working online I also plan on entering a home-based business in between blogging and taking care of my kids.


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