Learn the ways you can grow your income by investing your time and effort in PH Real Estate.
Property investing has proven to be a wealth-building way for budding investors. But there are several factors that one must know when looking into making your very first purchase. Here is a guide in order to earn a lot in property investing!
Step 1: Do your homework!
When looking into getting a property, it is important to do analytical research. Ask yourself, is this a good location that would attract future tenants? Is the area safe or does it flood here? Are the neighbors the type to party every night? Take the liberty to ask the locals and talk to the property managers. You need to be practical when it comes to these things and not end up purchasing a property just because you thought it looked “cute”.
Step 2: Double check yourself.
So let’s say you’ve already found an ideal property you’d like to invest in, do NOT buy it right away. A common mistake rookie investors make is that they act too impulsively! Sure, you have the funds to make that purchase straight away but there is a difference if you are financially fit to make the purchase in the long run. But what if you have a shortfall? What if you aren’t able to make a sale in months? You have to understand these are often long term and you need to think if this is something you can continuously afford financially.
Step 3: Know your market
You can buy all the properties you want but if they don’t match your target market then it would all go to waste. For example, do you think a family would want a 1 bedroom apartment with no yard? Or would a single young professional want to live in a 2 story home that’s way too big for him/her? Knowing your customers would help you match them to properties that would actually benefit them.
Step 4: Balance is key.
There are a lot of different aspects that come into play when it comes to property investing; you need to organize the collection of your rent, provide maintenance, check on your tenants etc. All of which can also be time consuming and downright impossible to do if you already have several properties. If that’s the case you might want to look into getting a property manager to handle all of these for you; though it is an additional cost it is definitely worth it. That way you can use that time to focus on getting more properties!
Step 5: Patience is a MUST