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3 Tips for Investing in Real Estate

  • December 1, 2021
  • By Nick Vincent
3 Tips for Investing in Real Estate

Investing in real estate is one of the most secure and safe investments you can do, so long as you take a number of precautions. With the invention of home-sharing platforms, like Airbnb, there are also more ways than ever to monetize your investment properties, allowing you to make more money and have more flexibility in how you use it too. Whether this is your first time investing in real estate, or you already own a property, keep reading to learn my 3 tips for investing in real estate. 

1. Be Realistic About the Costs
Owning a property is so much more than just the outright cost of buying it. You have the lawyer’s fees, which you can learn more about here. You may have agent fees, taxes, any repairs you may need to do. Each year you’ll be paying taxes, as well as maintenance, and depending on where it is, perhaps some homeowner fees or condo fees. These things all add up and mean that the cost of the house is actually more than the dollar value of the sale price. Likewise, if you get a mortgage, then you’re going to be paying more in terms of interest, etc, so just bear that in mind when you consider the real cost of owning a property. 

2. Stay Within Your Budget
It’s important to set a budget before you look to buy, as purchasing property can be an exciting and emotional process. Often people end up going beyond their budget in the heat of an auction, and it can complicate your finances. Set a budget before you start looking and be sure to be firm about it and stay within your means. If you’re buying a home to live in, remember it doesn’t have to be your forever home and you can look to upgrade when your finances are in a better place. It’s important to stay within your budget so you can pay off your mortgage quickly, saving on overall interest and then freeing up your credit so you can invest in more properties if you so wish.

3. Consider the Home’s Tech
What does the home have that makes it more comfortable? Perhaps it has some Durham Instruments pressure sensors in the HVAC system, or maybe the apartment building has a Hydrosolar geothermal heater? Does the apartment building have fingerprint entry, or does the home have an electric garage door opener? Consider what tech is in the home and what you’ll need to add in to get it up to your standard. If you feel the home is a bit behind on technology, such as solar power, don’t stress too much, you can always add these things in as you can afford them. But be mindful that it may impact the overall ‘cost’ of your home in the long run.

Investing in real estate can be a really exciting adventure, hopefully, these tips help you find properties that increase in value and provide you with an income. 

By Nick Vincent, December 1, 2021