The rise in popularity of forex trading, CFD trading, metals trading, and crypto trading has made many people join the growing population of rookie investors. Because trading and investing today are much easier, thanks to the Internet, many think that the older and more traditional forms of investing have already lost their charm and significance. While that could be accurate to certain types of investments, it does not apply to all. Case in point: real estate investing.
According to experienced investment manager Karl Lubieneki, since time immemorial, it has been proven that investing in real estate or properties could yield a lot of profit. If you buy a piece of land today, you can bet your bottom dollar that you can sell it at a much higher value after a decade or two, depending on the market developments. Of course, nothing has changed about the profile of land investments: it is still a passive source of income that is reserved for people who have the patience to wait for years before they can earn a profit. However, there’s been a trend of young professionals getting their hands on the real estate investments in the past several years. These individuals have diverse portfolio and real estate or rental housing is just one of their growing investments.
If you are thinking about giving real estate investment a shot, here are some tips you should try to consider:
Plan ahead. This is probably the boring part of real estate investing but it is the most fundamental and important one there is. If you are serious about making profit in the future, you must organize and plan everything ahead. This means understanding your investment appetite, knowing your investment goals, and having an exit plan. While planning, you must know if you are in it for the short term or the long term, and after discovering your goal, you will have an easier time picking the right type of real estate to invest in. Do you want to go for rental housing? Or do you want to buy an undeveloped real estate and wait for its value to go up after a few years? Knowing these basic factors will give you a solid plan.
Learn how the market works. One of the fatal errors newbie investors make is that they are too aggressive that they forget how to spend time in researching about the market. The real estate sector, while relatively stable, can have ups and downs. The market trends always change without warning. You would want to think like a seasoned investment manager like Karl Lubieneki. As an investor, you must do your own research by looking into the history of the market and the projections in the future. You must snoop around the factors that could potentially add value to the property’s price, such as other developments in the area. In doing so, you will have a better grasp of how the market will treat you in the future.
Develop a niche. There are so many properties and lands that are up for willing investors. There’s an endless number of choices. However, if you want to become a smarter and more scientific investor, you would want to develop a niche of your own. If you are into commercial properties, you would want to stick to investing in properties that possess commercial opportunities. The same goes if you want to go the route of rental housing. While you can mix and match, it is advisable to stick to a specific niche so you will develop a strong knowledge of how the trends in that specific niche.
Become a wise investor. Don’t skip steps even if it is very tempting to do. Investing in real estate can take time before you can gain profit, but the wait will be worth it when you get your slice of the pie.
