Tips On Real Estate Investment

[thushani]

Of course every one of us wants to be successful on every investment that we make. We want to earn more money through buying and selling houses. But real estate investing is not as simple as you may think. In fact, it is more time-consuming process. It will require you to find the right property, managing the investment property properly and keeping a good track of financial records.
To give you tips on how to succeed with this kind of investment, below are the tips you need to consider.

Choose a market and focus on it

Find a few things that you’re good at and do them well. There’s no such word as “Jack of all trades”. You can’t master everything. Choose a certain thing that you know you can excel. In real estate investment, choose your target market and put your focus on it.

Make a system

Many newbies in the real estate investment world are having a trouble managing their real job and their new real estate investing career. It’s very difficult to handle them both. In order for you to succeed it is important that you have your own system. Create systems that can help you on the things that you need to do like hiring a virtual assistant, investing in a website or getting a voice mail system that can provide potential sellers to get more information. This will prevent you to get stress and burn out in the long run.

Find a group

Investing your own money is not a wise choice at all, especially for beginners. It will put your own risk on the line and you’ll quickly reach your credit limit. Prior to that, instead investing your whole money alone, find or gather a group of investors who will invest their money. Start on a single person first, win his/her trust overtime you’ll soon have list of investors who will want to invest their money with you.

Minimize the risk

Watch out for risk. Real estate investing like any other business has its own risks and you should know how to avoid or lessen it as much as possible.

Learn from the expert

Get some idea from people who have real estate investment experience. It can be your friends, neighbors, colleagues, relatives as long as they know the in and out of real estate world. If you have time, attend training and seminars. You can talk to them and ask everything about real estate investment.

Enjoy it

You want to invest in real estate investment because it is an extremely rewarding opportunity. That’s good. But if you not happy on what you’re doing, then make an exit. You need to enjoy everything you do in order for you to succeed. Make sure you’re still having fun!

[MelbKate]

I agree with all of that, but would also suggest using a depreciation calculator and quantity surveyor's report to maximise depreciable items and negative gearing.

[Ben]

You should really have a good clear picture of what are you intended goals with your real estate investing and how that might be best served.

Another one would be to look at how you structure your deals and how you are structured personally to protect yourself if something should go wrong. Investing should be about making money (or building wealth) and not about losing what you already have.

Ben

[Cole]

Its right, getting a property in good place can be expensive but the benefits are more. I have taken the property in outskirts of the Adelaide. I love the place but it is difficult for getting the basic needs. So, I am planning to come back to the city and enjoy with friends for some time.

[Ladyhawk]

Great tips thank you...
I am a big fan of talking to those around me for their words of wisdom on property investment.
One of the most common comments I hear is, 'do your research'. Research the area you wish to invest in and know what houses are selling for and what is happening in the area.

I've also picked up a few tips from LJ Hooker Real Estate's magazine. (http://www.ljhooker.com.au/buy/yourguide/)

[MelbKate]

A few other things to keep in mind:

1. Don't get emotionally involved - property investment is a business.

2. Invest according to a particular strategy that suits your circumstances and goals e.g. negatively gearing, positively gearing, etc.

3. Attend a LOT of auctions and inspections to develop a quality property 'radar'.

Cheers!

[jenny.smith]

Well Real estate investment is the best option to make money today but at a time its difficult also to handle it.I m also planning to invest in real estate this year so this is very helpful for me.

[Simonica]

I agree with your tips. I like to add few tips.
Do your own research:- You can find more details from online investing sites.
Investment period: A investor must decide his investment period , Is it long term or short term?
Investment location is very important.

[francinemelbour]

Great tips, I agree with all your thoughts. We have to understand first which type of real investment were planning to invest is it business or residential real estate investment.?

[Matty39]

Hey guys,

I'm new to this and would like some feedback on a few things I'm not certain about. I've had this idea for a while now and would like to know what parts of it would most likely work out and what I may need to work on. Any constructive feedback would be appreciated.

I have always had the thought in my head that between myself (a fencer) and about ten of my mates most of us would be qualified in all the trades necessary to build a house. I will use ball park figures here (because I'm not entirely sure on the costs necessary for this) but lets say I were to take out a loan of 200,000 between myself and maybe another friend to buy some land and build a house. Something small to begin with, would the house once sold possibly make me a profit? And say sell for 300,000? (Again using figures just for argument's sake). So basically I would be building this house purely to make a profit from it and sell it immediately. I am interested to know if this is how it works or basically your built house ends up being worth whatever the land is plus the amount used to build it.

The other part of my question is would I be able to take out the loan and then immediately pay back my "200,000" once my house sells? Then making my "100,000" profit once the house sells? I also understand there are several other fees and charges with buying and developing land I am just interested in finding out more. Because basically I believe that I would be able to afford to do this providing I was given the loan. And then my major concern would only have to be paying off my loan once the building process had started providing my bank gave me a loan that allowed to pay it off in a short amount of time.

Any feedback would be greatly appreciated as this is an industry that I would love to get into.

[Paul Morton]

Great thinking Matty 39!

Definitely run your numbers, but if you buy well and in a good location, and don't over capitalise, you will be able to make money.

I've bought blocks of land and built using a builder and yes you can definitely end up with a property worth more than land + construction costs. Sometimes much more!

You'd want to see at least a 20% return on your development costs though. Otherwise it's not really worth your time and investment. i.e. if your total costs came to $250k then you'd want to be pocketing at least $50k clear.

If you need any other guidance don't hesitate to drop me a line, but I'm also sure there are experienced developers in this forum who are willing to offer some advice.

If you think you'll love it, go for it!! ...just find someone who's done what you want to do and learn, learn, learn.

Regards
Paul

[R3aLEstat3]

Great tips from a great person like you. I would be expecting more tips on real estate investment from you :)

[Jakobsen]

Real estate investment can be a tricky business. That is why you need to be soundly educated on the field of investment to make sure that you achive the best deals. Here are some tips that may help real estate investors:

-Make sure that you do plenty of research on the price or value of any local property.
-Make open negotiations with the seller. This will give you a very clear answer and save time.
-Invest wisely depending on the continued price increases.

[arondel]

Best tips for real estate investment like

Innovation and value sell
Never expect unexpected gain
Do not trust the seller
Do not overcommit
Make Sure Your Plans Are Profitable
Employ An Expert When In Doubt

[PropertyInvestment]

Loved all of what everyone else said but i thought i'd add this:
You're not always right because the crowd says you're right; you are right because you've done your homework. Don't only rely on other peoples opinions but get out there and just make a start, and if you have done a little bit of homework, you'll be miles ahead of some other people

[V.Vanderbuilt]

You can buy investment properties through a Self Managed Superannuation Fund (SMSF). This is a relatively new law and allows the investor to only have a 20% deposit and gear the rest of the investment. When thinking about entering a SMSF account there are a few things you need to know:
1. Do I have enough money in the fund for it to be viable?
If you have less than $150K in your superannuation then chances are that once fees are taken from advisors and end of year auditing you would have been better off with your regular superannuation account.

2. Am I going to implement my own financial plan or will I seek advice?

The main benefits of a SMSF are:
1. Higher levels of control
2. Wider range on investment options
3. Lower fees (if you have more than 150K as a general rule of thumb)
4. Tax strategies that can be employed for immediate returns

For further advice speak to a SMSF advisor, someone at Synergy could help you over the phone or by meeting in person.

You may also find handy our free ebook investing 101 its available for download at: www.synergyic.com.au (http://www.synergyic.com.au)

Ph: 02 9375 2252.

We are also giving away 10 free subscriptions to our investment newsletter for three months valued at $300. Get in quick to miss disappointment email newsletter to v.vanderbuilt@synergyic.com.au (v.vanderbuilt@synergyic.com.au)

[Davede]

Great Tips - I especially like 'Enjoy it'

Tip Number 52.

Invest for the long-term.

Property investment is by nature a long term investment. Compared with shares for instance there is substantial time and financial costs involved in buying and selling property.

Tip Number 53

Leverage off your portfolio.

Many property investors have the idea to buy property and pay it down fully then move onto the next. Once you have built up enough equity considering leveraging off it to purchase more properties.

In regards to property in an SMSF there are many things to be wary of and while there are numerous advantages including fantastic tax benefits there are also numerable drawbacks.

You cannot reduce your taxable income if the property is held in super and you cannot leverage off the property to purchase further investments.

[JackHomes]

This is quite information. I found it really interesting. Thanks…

[CSQTownPlanner]

Great information provided by you thanks for sharing this great post regarding real estate investment.