As entrepreneurs, one of the ways in which we earn money is from investing. We don’t do it just to earn big bucks, but investing allows us to grow our savings without having to do all the hard labour. Plans of early retirement or securing our family’s future are just some of the main reasons why we are always on the lookout for investment opportunities.
However, a lot of entrepreneurs are hesitant to dabble in investing because of the risk factor that’s involved. In fact, if they do push through with investing, they choose low risk accounts; and this will obviously lead to low returns. This is where real estate comes in, one of the most lucrative investment option.
Why invest in real estate
The best thing about investing in real estate is, even when the market isn’t in its best shape, you’ll still earn significantly better than what you’re going to earn in stocks. Whether you’re planning to buy land or a condominium unit, housing is a necessity. People will need a place to live in or work at, so you’re secure with real estate.
Tips on getting started
Don’t use all of your savings
While real estate is a money-earning investment whether or not the economy is good, you still have to make sure that the money you’re putting in will not deplete your savings. Remember that investment money should be surplus money and should be separate from your actual savings.
Know your financial goals
Every investment starts with your personal goals. What do you expect to gain from investing in real estate, what are your plans? Will you rent out the house or condo unit, or will you sell it? How much will you charge per month?
These are some of the questions you need to answer before you call a real estate agent. This just gives you a general picture of what you can expect once you’ve started your investment.
Do some studying
Real estate investment is different from stocks and mutual funds mainly because you’re in control of the earnings rather than a hired fund manager. So it’s just natural look up books and attend seminars on how you can manage your investment properly.
But books and seminars aren’t the only ways to study; you can also just make an appointment with a financial advisor. You’ve already set financial goals for yourself, so use it as a stepping point in your research.
Shop around for properties
Last, but not least, don’t buy the first appealing property you see. There are different factors to consider when determining the saleability of a place: appearance, amenities, location, and accessibility. If you’re able to tick all those boxes, then you’re off to a good start.
When investing in real estate, more than just the factors mentioned above, the developer also plays a big role in its profitability. So while you’re mulling over these tips, check out the Alkimos Vista real estate community in Perth by Lendlease – a leading developer with a great reputation for providing investors with the most profitable real estate options. Good luck on your investment!
