How to Find the Right Property Investments

Finding the right property to begin your journey into property investment doesn’t have to feel like an obstacle. No, far from it. All it takes to get started is knowing where to look, and establishing if there is a rental demand to make it worth while. And we can guarantee you’re real estate agent will be more than happy to lend you a helping hand with that task.

You see the great thing about property investment is that once you know what works, you will be able to pass on this information to your estate agents who in turn will be able to compile a list of which properties match – just for you. But first before all this, here are 4 simple tools to help you narrow down your selection criteria.

Property Rentals

Despite rental prices rising by 15% in the last 6 months, there are still properties out there that generate profits below the market rate. Now you’re probably thinking straight away “okay I’ll avoid those properties”, but here is the catch… there is still a potential profit hidden within these rental properties.

You see, these rental prices are based on property values. So if you can find a property that is low in value and border-line profitable. You can essentially turn this information around; bring the property up to standard, and reap the rewards of a property low on repayments, but high in rental yields. After all, rental properties are predicted to rise another 15% in the next two years. Plenty of time for you to acquire a good return investment and increase your positive cash flow.

Neighbourhood

Where do people want to live? Do your research and you’ll soon notice a trend. A neighbourhood or region undergoing some form of improvement will experience increased interest over time. So to take advantage of these deals you need to get your timing right. You need to get in before property prices flourish, and invest while they are still low.

So what causes an area to improve? There are many reasons really, but the top three are: jobs opportunities, new businesses and zoning changes.

Property Prices

In our current financial climate, finding a property being offered for below its real property value is not uncommon, but in a property boom it is rare. This is not to say it won’t happen. That there won’t be cases where homeowners are wanting to sell up fast and reduce their property prices. But it is just a matter of keeping your eyes open; spotting these property bargains and investing.

You see, even if they are being sold below market value, these doesn’t mean their rental value will have fallen alongside it. No. In reality, by investing at below value, the differences between your monthly repayments and rental income will be even higher. Why? Because your tenant will still be expected to pay rental yields to match the properties real value.

Maintenance

If you can find a property that has got a high value potential but requires minimal improvement costs, then you are onto a winner. The one mistake many investors make when investing in a property, is investing low to only go on and make unnecessary improvements later.

Quite often many investors let their own personal preferences take over. They renovate more under the influence that it is their own home, than as a property they plan to rent out. And this is where the costs start piling up. But if, like we said before, you can find a property that is low in value to buy, but when renovated would be worth substantially more. The extra you’ll have left over from your down payment can be used to fund this quick renovation. You just need to keep your costs low, and the rest will come naturally.

And that’s it. By utilising real estate agents, doing your research and keeping an open mind on what you need to create a positive cash flow, building up your property investment portfolio couldn’t be simpler.

So get started. Now, more than ever, is the perfect time to start harnessing the property market and take advantage of all the incredible deals that are on offer.

Whether You Have a Broker or Not, You Need to Educate Yourself on Investments

The first time you took a look at the stock market pages in the newspaper or on TV, you undoubtedly said something close to “Holy cow, I’ll never learn about this stuff.” You then went out and hired a broker so you wouldn’t have to delve into the impossible enigma of the stock market and trading. You needed someone with expert knowledge of investing and trading in the stock market.

That is all well and good. But let’s take another look at it. You are no expert on toxicology, but you know better than to drink from a bottle labeled “arsenic.” That stuff is lethal. You know that if someone suggests you take arsenic for your illness, they are not dealing with your best interest at heart. You will not take their advice because it could definitely be hazardous to your health.

Can you say that about the money you have floating around in the stock market right now? Do you have enough knowledge about stocks and trading to save your own life if things start going downhill? Or are you going to find yourself up a creek without a paddle if it turns out that your broker doesn’t know what they’re doing after all.

Gaining the Necessary Knowledge of the Stock Market can be Intimidating, but…

No one wants to think about their trusted broker making irreparable mistakes with their money, but no one wants to think about being left without a penny when it’s time to retire. It’s just one of those things. Which means you really need to know enough about the stock market to be able to realize when a mistake is being made, or when a new and interesting opportunity presents itself, whether you’re doing your own trading as a rule of thumb or trusting someone else to do it for you.

The most important thing for you to carry away from this is that not only is it important for you to learn the basics of stock market trading, you also need to have enough faith in yourself and your future to recognize that you actually can learn the basics of stock market trading. Really.

Where do you go to Learn, then?

You have probably heard or read stories about people being self-taught investment gurus. These smart, tenacious types supposedly read the financial section of the newspaper every morning to glean everything they can about how the stock market operates. These golden icons of Wall Street become billionaires before the month is over. I would suggest to you that this is undoubtedly an apocryphal tale and you should not be sucked in. You need a formal approach to learning the ropes. You need a program that’s designed and then customized to fit your needs – the kind of program aimed at the rawest beginner so you can learn the ins and outs of the stock market from the ground up. This same program should offer more advanced learning opportunities for you to take advantage of once the basics are clearly understood and practiced. Your program should also provide you a connection with real people who have learned as you have and have ample experience in the market using the very techniques that you are learning.

Lastly, the foremost thing when it comes to choosing any program, know with whom you are working. Know this before you search the net and enter into a business relationship with the first “expert” that comes your way. If you do all this, you will have empowered yourself to successfully handle your financial future.

The Top 2 Reasons You Should Invest in Residential Real Estate

What is the number one reason you should invest in residential real estate? Since the colonization of North America, no other economic asset has produced as much wealth as real estate. And, no other asset has produced as many millionaires as real estate. Ask the likes of Leona Helmsley, the Springs Clan, George Washington, John Jacob Astor, Sam Zell, and others (a number of which are billionaires). They all made their millions in real estate and most had all or at least a large part of their wealth in real estate.

Besides reliability and consistency producing more wealth than any other asset. You should be considering residential real estate for a lot of other good reasons. First, what other asset provides an education in how to care for it in the general every day activities that we all cope with. Paying the gas bill, or electric bill, or water bill are part of having a home and are part of owning residential real estate. Maintenance issues like roof replacement, rotten wood repair, fixing the plumbing, unstopping the toilet, repairing broken locks, and so much more are simply part of every day life and… part of managing residential property. While you may never have leased a home or an apartment to a consumer, the odds are very high that you have completed this exercise yourself and are familiar with the questions asked, the background and credit checks completed, your liabilities if you failed to pay and what the process would be should they have to evict you. You probably already know when rent checks are due, when they are late, and what will occur if not paid on time. You have an idea how to report a maintenance request even if you don’t know what to do with it when you receive it. In fact, you’ve spent a good part of your life to date learning the ins and outs of residential real estate operations and management. Additionally, as an American, you likely already know some or even many of the programs available to you to purchase a home and you have some sense of the loan process you will need to complete for the purchase. What other business can you think of that without additional professional training that you would know so much about?

Because of these two points, no one has created as much wealth as in housing and there is no business you know so much about, you should very seriously consider making residential investing part of your asset portfolio.