Investing in property can be one of the most rewarding yet daunting experiences you’ll have, according to real estate investor Ron Cadman of Investar USA. Although property investment can certainly present wonderful financial opportunities, it is critical that you avoid simply purchasing the first home or commercial property that appeals to you.
“Taking control of your financial future by investing in real estate is a decision that requires action. And life rewards action. So remove fear through education and know that we all started from the same place.” according to Ron Cadman of Investar USA.
Invest in quality locations that will continue to be more desirable over time. Even if you pay a little more at the purchase date, in the long run you will thank yourself.
Here is a list of three essential factors to consider before making a property purchase this fall.
1. Keep in Mind Your Overall Goals
According to Cadman, it is paramount that you ask yourself “Why exactly am I investing?” before choosing to buy a certain property. Maybe you’d like to buy a property that will generate plenty of passive income for you so that you can spend more time with your loved ones. Or, perhaps you’d like to produce large revenues so that you can give to charity more. Whatever the reason may be, make sure that the properties you buy will help you to achieve your personal goal.
2. Look at Economic Drivers and Trends
During your property search, it can be helpful to look at the markets that your chosen assets will serve. In addition, take a look at the assets’ current expenses and rent prices. With this information, you can determine how great your profit margins would be if you bought those properties. Do those numbers align with your target yields? If not, it’s time to move on to the next potential property.
3. Consider the Community
It is also a good idea to consider the immediate area you are contemplating investing in.
Are the surrounding properties well kept and attracting the type of residents you desire. If not, it might be best to move your sights to another part of the City.