If you are looking for an investment strategy, financial counselors will suggest buying and owning real estate. This type of investment can be both lucrative and fulfilling. Compared with stock investors, real estate investors can use leverage to secure a property on an installment basis.
For some properties, a mortgage usually ranges from 20% to 25% initial payment, or in some cases, 5% down payment. An experienced buyer’s agent can help with assessing these payment terms depending on the property for sale. If you are looking for an investment located in Sydney, check out Jack Henderson Sydney Buyers Agent. These agents can help you find a perfect property that would fit your requirements. Several important things should be considered when buying a property for investment. Here are ways on how to grow your portfolio through real estate investment.
Buy Real Estate Investment Trusts (REITs)
Usually compared with mutual funds, these are companies that own commercial buildings or spaces. REITs can have high dividend returns, which can be a good investment for retirement. These dividends can be reinvested and grow through time.
This type of investment allows you to invest without the physical real estate. The management takes care of all the ownership and rentals. All you have to do is wait for your dividends, which are usually higher in comparison with other stock-based investments.
Get Your Portfolio in Order
Real estate will require a large amount of investment, plan out your budget. Before engaging in this type of investment, establish enough financial funds, whether for a down payment or a full cash transaction for the property. Consider having an emergency fund for this investment in case you will need it for some fixes or repairs.
Make sure that you also have enough funds for daily living, so you do not go into debt when personal emergencies happen and will not let you use your fund for your investment. Being financially prepared will help you determine your readiness to invest in real estate property.
Be Familiar with the Local Property or Housing Market
Another important step when you plan to invest in your property is to know the local market or the neighborhood where your prospective house or building is located. Seek buyer’s agents and talk with them. Know who lives in the area, ask the nearest establishments, or what modes of transportation are available if you do not own a private vehicle.
Use Online Platforms for Real Estate
If you plan to rent out a property, you can use online platforms to advertise. People use the internet to search for and access anything now. Make use of this opportunity to reach out to your target market. Renting out a property can give you fast money. All you need is the proper platform to make it visible to potential clients.
Real Estate investment can give you a long-term return, but it can go along with some risks. Make sure to prepare for some of these risks and plan how you can earn your investment.