Property Investing Is As Easy As 1-2-3! Easy steps towards property investing There are two things that make people hesitate to plunge into property investing, even when they know that it can be a great way to achieve significant capital gains.
These two factors are lack of capital and lack of knowledge. People often find themselves too intimidated by property investing due to all the talk about the level of complexity and risk involved. Turning An Investment Property Into A Rental Property. Tips for turning an investment property into a rental property If you are thinking of purchasing an investment property with the goal of renting it out, you will need to know how to turn the investment property into a rental property and make it ‘rent-ready’.
Let us look at how you can go about achieving this. The first thing that you will need to keep in mind while carrying out changes to your investment property is that the changes you carry out while targeting a flip will be vastly different from the changes you carry out while targeting renting out the property. Selling When Property Prices Are Rising. Should you sell your property when property prices are rising?
Property investing is a field where one is required to keep adapting to changing situations. While one must never get into property investing without a concrete plan, one must also be prepared to deviate from the plan if the situation calls for it. For example, let us imagine a situation where you bought a certain property with the intention of renovating it and carrying out the necessary repairs, and selling it after a certain number of months. Sell, Rent Out Or Re-Invest? Choosing between selling, renting out and re-investing If you are thinking of moving out of your present home, you could choose to sell it and use the money for the down payment towards the purchase of a new home, or you could choose to rent out your property instead of selling it, or you could choose to sell it and then use the money for purchasing an investment property.
The first route is that of selling your home and using the money towards the down payment for purchasing your new home. One of the main advantages of such a move is that it could end up lowering your debt as using this money for the down payment could lead to lower mortgage payments and lesser interest. The downside is that you are not receiving any cash flow from the money received from selling off your old home. The second route is that of renting out your current primary home. The downside of this route is that you might have difficulty with the down payment for purchasing your new primary home. How To Finance Your Home Purchase. Looking at ways to finance purchasing a home Home ownership is a goal that many individuals have.
Unfortunately, homes usually do not come cheap. How do you go about purchasing a home, when you do not have sufficient savings to buy one? Approaching a lender for a home loan is a very common way of financing a home purchase. While a home loan can be very useful for those who do not have the money to buy a house, it is definitely not an easy way to finance a home purchase – lenders will check the borrower’s credit history and other details thoroughly before granting a loan, so as to assess their ability to repay the loaned amount.
Core Concepts Of Property Investing. Concepts that every property investor must be aware of If you are thinking of getting into property investing, there are a few core concepts that you should be aware of.
Let us look at some of them. The first concept is that property investing is not a shortcut to capital gains, but rather a long series of modest but consistent gains. Even in property flipping - where one tries to make a large profit in a relatively short span of time (about a year) as compared to buy and hold property investing – one cannot expect to make a fortune overnight. One should see property investing as a long-term mission, and be ready to give it the time and effort that it requires, year after year.
The second concept to keep in mind is that social skills are extremely important in property investing, as it is primarily a people business. It is people skills that will allow you to become friends with sellers, buyers, etc., and not be seen as ‘another profit-seeking individual’. Negotiating Tactics. Negotiating tactics that property-buyers need to know If you are looking at buying a property, one aspect of the process that you must be ready for is negotiations.
Negotiations can be quite tricky and bad negotiating skills can cost you a deal or lead to a bad deal. Let us look at a few negotiating tactics that you should be aware of as a property-buyer. The first rule to understand is that negotiations are all about ‘give and take’. You cannot go into negotiations with the mission of ‘getting everything you want but giving nothing what the other party wants’. In short, you shouldn’t be aggressive or submissive – just be assertive. The most important weapon of every negotiator is knowledge.
Adani Realty – India’s foremost property developer and the company behind large-scale residential and commercial properties – would like to advise all property-buyers to negotiate with property-sellers or their agents only with the help of experienced real estate agents. Property Investing Strategies. The right strategies to follow for long-term success in property investing If you are planning on plunging into the world of property investing, you have to be ready for a long journey.
For success during this long journey, you will be required to adopt a few basic strategies. Let us look at some of these strategies. The first strategy is that of networking and socialising with other property investors and real estate agents. After all, real estate is a people business. Comparing Agents And Investors. Looking at the differences between real estate agents and real estate investors Many people have a hard time differentiating between real estate agents and real estate investors.
After all, both are individuals actively engaged in real estate dealings, the purchase and sale of properties, etc. However, the roles of agents and investors are fundamentally different. Let us look at the main differences. A real estate investor is a person looking to earn profits and build wealth through investing in real estate. A real estate agent, however, does not really buy or sell properties – rather, he helps others in the purchase and sale of properties. One of the fundamental differences between investors and agents is how they earn money.
Another difference is the amount of risk involved. Many successful investors and agents share characteristics like great social skills. Property Investing For Busy Individuals. How to go about property investing despite not having time Many individuals would like to get into property investing but lament of ‘lack of time’.
What is to be understood is that not everyone in the field of property investing are ‘full-time’ property investors – in fact, a huge chunk of property investors are individuals who are full-time professionals in other fields. Many of such individuals have become extremely successful in property investing. How did they manage to be so successful despite their hectic schedules? Buy And Hold Investing. Tips for buy and hold investors If you are planning on getting into property investing, you can choose from three major routes – flip, wholesale, and buy and hold. Buy and hold refers to buying a property and ‘holding’ it for a long period of time before selling it (if at all). While holding the property, one can make the property generate income by renting it out as residential space, office space, etc.
If you are planning on going the route of buy and hold, there are a few things that you will need to keep in mind. The first thing to keep in mind is to find the right real estate agent. You should only buy those properties which can generate positive cash-flow. The next thing to do is to keep your finances in order. Learning From Property Investing Mistakes. Using mistakes as lessons to advance further in property investing If you are thinking of getting started in property investing, you must first educate yourself regarding everything related to the subject to avoid traps which can cause you serious setbacks. However, despite your best efforts and precautions, you might still end up making many mistakes (not of a very serious nature). Such mistakes are to be expected and committing them doesn’t make you a failure. You only become a failure when you do not learn from your mistakes.
In fact, mistakes can be a powerful tool for becoming better and better at property investing, and can be your greatest teacher. One of the most common ways to learn from mistakes is through trial and error. Building Focus In Property Investing. Steps towards building focus as a property investor If you are planning on getting into property investing but are feeling confused as to where to start, you are not alone. It is easy to feel overwhelmed by the many facets there are to property investing. In fact, one of the most common questions asked by those wanting to get into property investing is - ‘Where do I start? There are simply too many factors involved that I do not know where to focus’. The lack of focus is like shooting at a vague target. The first and foremost thing to do is to write down your goals as well as the deadlines – you must list your short-term goals as well as your long-term ones. The next step is to evaluate your finances.
Buyer’s Remorse. Preventing home buyer’s remorse Imagine that you are a home owner who has put his property up for sale. After a long period of waiting, you finally get a good offer from a prospective buyer. Both of you go ahead with the deal, and you are satisfied that the transaction will be over soon. However, at the last minute the buyer informs you that he is having second thoughts about the deal, and chooses to back out. This phenomenon is called buyer’s remorse and can be a serious setback for a seller as he will now have to place his property back on the market with prospective buyers wondering why the deal fell through – this doubt alone can be enough for the property to acquire a negative reputation and remain unsold for a long time and/or get sold for an amount lesser than what it merits.
As a seller, how does one prevent buyer’s remorse? Another factor that tends to produce buyer’s remorse is multiple-bidding and mistakes during negotiation. Mistakes That Home-Buyers Make. Avoiding common mistakes committed by home-buyers Buying a new home can be both an exhausting and exhilarating experience – there is nothing like the feeling of ‘owning a home’. However, owning a home comes with its responsibilities. The Right Commercial Property. The First Investment Property. Before Investing In Property. An Investment Plan. Formulating an effective investment plan.