We have one real estate investing tip for you today.
The property investment tip is simple and straight forward: Do not buy property based on sentiments alone.
For example, you hear many first time home buyers say something like, "I bought the property in that particular location to be close to my friend" or "I bought the property to be close to my village".
Those sentiments may be important to you but they won't send money into your bank account.
Remember . . . this web site, selfmaderetiree.com, is a retirement planning guide that focuses on helping employees build a cash flow system that will provide the income needed to enjoy a financially free retirement.
In view of that goal, our real estate investing tip for the day is that you should follow the money.
So, instead of investing in real estate based on sentiments, you should actually invest based on the expected return on investment of the property you're interested in buying.
If the expected return on investment is good . . . buy the property.
If the expected return on investment is too low . . . look elsewhere. No sentiments.
Attend The Premium Real Estate Agent Training
Make EXTRA Money
One real estate investment mistake common among first time home buyers is this: they often buy property purely based on current circumstances surrounding the property.
Why is that a risk?
Simple. It is a risk because a property is a lifetime asset that is passed from generation to generation. It is not a piece of electronics that is discarded when a more fanciful model hits the electronic market.
This means that when a real estate investor buys a property, he or she can hold the property for over 100years. And the property can remain a family asset long after the death of the family member who bought it.
Consequently, the second real estate investing tip for today is this: Do not buy property purely based on current circumstances.
When buying a property that is put up for sale, give some thought to what is likely to become the status of the property in, say, another 50 years.
For example, ask yourself the following questions:
1. Is the property too close to a major power line?
2. Will the property be too close to a major proposed railway line in the future?
3. Is the property too close to a gas or petrol pipeline?
4. Is the property on a two-lane tarred road that is likely to become a six-lane road in the near future?
5. Is the property on a major road that leads to several towns? Is there any rumour of government plans to make one of the distant towns an investment destination? If so, is the expected volume of traffic to that investment destination likely going to compel the government to expand the road into a 10-lane expressway?
6. How is the topology of the area? Is the street where the property is located likely to suffer from flooding when the area becomes highly developed and populated?
The pre-purchase questions listed above is not exhaustive.
As you learn real estate investing, you will discover that there are even more questions you need to ask before completing that purchase.
As an employee preparing for retirement, you should not invest in real estate just to impress your friends.
Your goal should be to secure a good deal when buying a property, whether you're buying your first house or your third. And a good deal is a property with potential for high return on your investment.
In addition, do not buy property purely based on current circumstances because if you do, you risk losing your real estate investment in the future when circumstances change.
There is no doubt about it . . . Real estate investing is a secure path to financial independence after retirement.
The more real estate assets you acquire while still in paid employment, the greater the cash flow into your bank account during your retirement life.
Consequently, we highly recommend that you take this real estate investing tip seriously.
Think return on investment (ROI) when buying property.
Think also about the long-term security of the property you wish to buy.
Real Estate Investing Secret
FREE 7-Day E-Course: Rethink Retirement - 7 Tips To Escape The Rat Race And Retire Happy
Simply enter your email in the box below and click subscribe
Follow Us On:
Mar 17, 19 08:16 PM
Real estate investing opportunity in Lagos Nigeria. High return on investment land for sale in Lagos. Buy now. Make more money from your property investment.
Mar 16, 19 06:54 PM
Sales leads software for marketing and sales automation. Facebook messenger lead generation, follow-up and conversational selling software. Guaranteed high conversion rate and increased sales.
Mar 09, 19 06:17 AM
Virtual assistant software developer Nigeria. Offers Facebook messenger advertising app for businesses. Corporate instant messaging software application. Get more business leads. Convert more leads to…