Real estate investment can be profitable at all times, irrespective of market trends. The important factor however here is to make decisions that are sound and based on thorough research. As every beginner knows, you could either invest in residential and commercial property. You could either invest to let out the property on rent or consider flipping properties. When investing in properties to be let out on rent, it’s important to consider the period of time that you are likely to hold on to your property. The longer you hold on to a property, the higher would be the maintenance and repair costs. On the other hand the value of the property is far likely to exceed the costs incurred. For example for those looking to invest in a property for about 20 years you are sure to undergo major renovations and repairs including replacing roofs etc. But if you are likely to hold on to the property not for long there is a chance that you won’t have to undergo repair costs.But the chances of the value of the property appreciating isn’t very high.
A number of real estate investors flip properties or buy a property, keep it for a short period and sell it back. The entire investment takes place within a few months. But this can be risky as well, as it’s absolutely important for the investor to offload the property quickly or he is likely to incur loss.
Immaterial of the property that you invest, it’s important for you to be mindful of a few things. For example remember to invest in a property that’s immune to recession. Properties that are immune to recession include properties that are conveniently located within close reach of schools, offices etc. Working class localities with homes that are likely to be well taken care of are a safe bet.
It’s not only the location, but also the right property that’s important for real estate investing. Although condos and luxury apartments are a good investment, remember to invest in a property that’s just the right sized with about 800 or 1200 square feet and has all the amenities required by a working class mid-sized family. These properties have the largest group of tenants, thus ensuring that the houses are almost likely to be always occupied.
For those looking to making profit from renting, the right tenant can make or break your investment. It’s important to screen every prospective tenant with respect to his criminal records, proof of income, credit check, rental history, personal interview etc. Also investing time and money on little fringe things like investing on insurance, protecting yourself against future suits, etc. help to ensure that you never go wrong with your investment.