Can almost anyone can make serious profits in the real estate business? Sorry to shatter your dreams, but not necessarily. Financial success in investment real estate requires skill and knowledge. A limited understanding isn’t going to bring in the types of returns on property that you might see in other types of investments. The part that tricks many investors up is when it comes to evaluating the potentials of properties. Novices often make the mistake of focusing primarily on the return, the income…While the smart investor also considers many additional factors.
If an investment property was just an ATM machine, we wouldn’t be having this conversation. But your investment properties will have people living in them, and that means something called: wear and tear. Your tenants, while contributing to your income, will also expect returns for their rent. Maintenance costs have to be factored into the equation. If the roof leaks, you HAVE to fix it.
Critical to your goals is to determine whether or not the property under consideration fits into your overall investment plan. Having a solid plan is essential to the type of organization that separates losses from big profits. Hopefully your investment strategy is more sophisticated than just amassing properties, if not, you may to address this issue with an investment consultant before buying. Don’t be afraid to seek professional help…
The biggest factor in property investment to always consider is location, location, location…Sure, that is three factors – but you know what we are saying…You want to make sure your property is someplace that people are going to want to live, to work, or to shop. We give the developers in Dubai a big hand – but not all of us have 20 billion to dump into a dessert. Smart investors need to find key locations. Also consider the local tenant quality, who will be renting or visiting your properties. Near a university means college kids, while near Park Avenue means a more upwardly mobile crowd. Both come with their own challenges, needs, and demands.
If this sounds daunting, don’t fret. We can work with you to turn your small nest egg into a nice chunk of change. Property investment is a team sport, and if you put together a good team, you will be able to set the groundwork for a successful investment in property.
Kuester Property Management