Are you considering investing in real estate? Property can be intriguing, and the fact that it is a tangible asset makes it a lot more interesting than many other types of investment. Many people like the idea of making money from property investment, but knowing how to get started can be a challenge.
There are many success stories out there that feature real estate investors and property developers such as Kyle Corkum. But, to carve out your niche in the real estate industry, you need to consider what you want to invest in and how you plan to do it. Planning will give your venture into the world of property the best chance of being successful. Here are some of the factors you will need to consider before you start investing in real estate.
Long Term or Short Term Investment?
Understanding whether you plan to make real estate a long-term or short-term investment will play a crucial role in your property buying decisions. Before you begin buying up properties, you will need to consider whether you plan to hold onto them for many years and see their value grow over time. Alternatively, you may decide to make short-term investments and buy up properties that you plan to remodel and flip for profit. Or, you may choose to use a combination of both these methods. However, when you are starting in property investment, you need to know your exact plans to select the right property to get a healthy return on your investment. It is essential to get this right on your first investment, as this will likely finance your future real estate purchases.
Commercial or Residential Property?
One of the most crucial considerations for any would-be property investor is whether to buy residential or commercial real estate. Which one of these you choose is dependent on how long you want to keep hold of your investment and whether you plan to re-sell or maintain the property as a rental. Commercial property is usually bought as a long-term investment and rented out, as there is often less money to be made from flipping. But, that doesn’t mean that you can’t get creative with commercial property. If permissions allow, you could divide a larger commercial property into smaller units or buy an old industrial building, such as a warehouse and transform it into luxury apartments. In most cases, commercial property follows a traditional route of being purchased and then rented out to a business.
Will You Take a Hands-on or Hands-off Approach?
One of the best things about property investment is having the option to be as hands-on or hands-off as you like. If you want to control your investment, you can transform a property ready for rental or flip it for profit. Alternatively, if you do not want to be involved in the day-to-day management of your property, you could treat real estate as a passive income and let a property management company take care of the property on your behalf.