Is It A Bad Idea To Invest In Property During Today's Economy?
Investing in real estate is almost always a good way to increase your income
. I am here to tell you that it may not happen overnight, but over the long haul having investment property is a ticket to gaining wealth. What you need to remember is that it is slow and steady growth. It isn't a get rich quick investment in most cases. The best part is that through leveraging you can increase your income by borrowing money!
The question I get asked the most is; "Is Investment Property a Good Idea in Today's Economy?" Well, let me answer that by saying that the real estate prices have dropped so significantly that this is a great time to buy property for investment. It is a great time to dive into investing in rental property.
Another tip is you should get to know your locations well. You will need to be certain that your desired location is the desirable area for leasing or renting.
If you are a newbie, I recommend that you start small.Maybe a one or two bed condominium would suit you. I did say this before; but do your utmost to save up for a deposit. With no money down it is near impossible to secure positive cash flow. I teach many people that maintaining an excellent credit FICO score is important; especially in today's economy. A great FICO score may significantly reduce your mortgage repayment installments which has a good impact on your monthly cash flow. Should you prefer to begin with homes instead of condos; I believe you should start with "entry houses" instead of taking added risk of pursuing high end homes or even commercial real estate.
This will also help in the chance that you are not able to rent the home and you have to take over the payments
Another very important tip I have for you is to only pursue motivated sellers. You will weed out the signs from a highly motivated seller or your real estate agent will know. You should strive to always have a professional inspection of your commercial real estate property or home or condo. Some fore-go this important part of the process and it ends up being a mistake.
The economy has forced many people to prefer rent a home rather than buy a home. This is why I think investment property is a good idea in today's economy. Just make sure that you do your homework.Many people and resources exist out there to assist you.