Estate Investing Ideas
The last downturn of the global stock market saw millions of ‘every day’
investors having their fingers badly burned. Overnight life savings were eaten
away, retirement funds went into decline and the economic forecast for all of
us who had any money invested in stocks and shares was gloomy to say the very
As a direct result investors in their thousands turned their backs on the rollercoaster
stock markets and sought alternative asset classes in which to invest their
hard earned money. This has led to a global boom in real estate markets and
property prices, and it has spawned a generation of budding real estate investors.
For those of you wondering whether it’s too late to venture into real
estate investing or considering how best to make the most significant returns
from property investment, here are 5 hot tips for successful real estate investment
to set you on the path to potential profits!
1) Consider Investment Property Abroad
There are many relatively untapped property markets in countries around the
world that offer the real estate investor greater return on investment in the
form of rental yields or short to medium term capital growth.
While major markets in the USA, UK, Australia and Europe are slowing down,
there are emerging property markets globally that are hungry for investment
and are proving to be highly profitable.
For example, in 2007 a number of countries are already aligned for accession
into the European Union and as a result property markets in these countries
are likely to benefit from greater numbers of visitors, more trade, increased
investment into infrastructure and more stable economies. The likes of Hungary,
Slovakia, Bulgaria, Croatia, Turkey and even Northern Cyprus are just a few
examples of overseas destinations with emerging real estate markets that may
be worthy of your consideration.
2) Make Sure Your Plans Are Profitable
This sounds ridiculously simple right? Well, you’d be surprised how few
people actually make sure their plans are actually sustainable and as profitable
as they hope.
Examine any real estate market that you’re about to enter by firstly
comparing property values across the city, state or region and making sure you
know what your money will buy you. Then ensure that the rental yield you intend
to obtain from your property is actually realistic or that the asking price
you intend to set once you’ve renovated the property will be offered.
3) Never Assume Anything
This goes from assuming a house is structurally sound to accepting that tax
laws won’t change – from believing your tenants when they tell you
that they are house proud and honest to accepting the first builder’s
Do your due diligence on every single aspect of the process from ensuring the
asking price for a property is fair to checking your tax returns before your
accountant submits them for you. This is your investment, your future, your
potential profit and therefore it is ultimately your responsibility.
4) Employ An Expert When In Doubt
Few people are a master of all trades therefore be prepared to acknowledge
areas where you are far from being an expert and at least consider courting
a second opinion. Again, this goes from checking out the structural soundness
of a property to understanding the legal ramifications of letting out your property.
If in doubt always double check – and if this means you have to call in
an expert, make sure you call in an expert!
5) Set A Realistic Budget And Stick To It
Whether you’re purchasing property to let out or buying real estate to
renovate you need to sit down and add up every single area of projected expenditure
to enable you to set a realistic budget with which to work.
Make sure you add in everything from having searches and surveys conducted,
legal fees, accountancy fees, insurance costs, likely interest payments on any
finance required, taxation, connection of utilities, marketing for tenants or
buyers, real estate agency fees, and of course don’t
forget to add on the cost of the property and the price of any renovation and
refurnishing and decorating work required.
Spend time considering every single area where a cost will be incurred and
detail every likely payment that will have to be made and you will arm yourself
with a bullet proof budget and do all you can to ensure you encounter no nasty
surprises along the way.