The real estate industry is so vast and diverse that it provides investors and entrepreneurs with many lucrative investment opportunities. In the U.S., the residential real estate market alone is currently worth $27 trillion.
Real estate expert and bold investor Steven Taylor has built a wildly successful career out of redeveloping apartments and investing in property. Many like-minded investors have also made it big in the real estate market, and you could make it too. If you are looking to get a taste of the real estate investment industry, here are three factors that you need to consider before buying your first property.
The Investment Plan
What is your investment plan? In other words, how do you plan to make a profit on the investment? You could, for instance, renovate the property and resell it, hold it till the value shoots up, or maybe you’d opt to become a landlord and rent the property. Figure out what you want to do with the property before closing; this should give you a good idea of your investment’s returns and maturity period.
Location is a critical consideration when buying any property, especially residential buildings. Consider factors such as population density, proximity to amenities, and infrastructure. The location determines how well the property appreciates, its sale appeal, and the potential projected earning on the investment. Make sure to choose a property located in an area that best aligns with your investment plan and budget.
The market dynamics of the real estate industry keep changing. The market is easily and often influenced by the prevailing social and political climate, state of the economy, and the spending power of potential buyers and sellers. Asses the stability of the market within the projected investment period to avoid making costly investment mistakes and misinformed assumptions.
You need to come up with a solid investment plan and learn the right time to buy in order to succeed in property investments. Essentially, you have to look at the venture from many different perspectives to make the right decisions.