This is a question that my husband and I mulled over for many, many hours. We were more scared by the idea of a real estate investment than we were by the realization we were reaching yet another wedding anniversary (where does the time go??!!). As a buyer, you have every right to be wary: you’re investing big money that you’ve worked hard for – you’d be crazy not to feel at least a little anxious about investing in bricks and mortar. But there are things you can do to make the process a little easier and ensure your property is a good investment:
Choose your area wisely
If you’re looking to purchase a condo for investment, there’s no point buying into an area that you know will lose value. Of course, you can’t be 100% certain how housing will go, but you can look at reliable research to see which areas are consistently strong in the housing market and yield profit, or at least stay stable in a down market. This kind of information helped us to decide to go ahead with investing in Brooklyn.
Consider buying property as freedom
I’d always considered real estate investment as a ball and chain, tying me to one spot. But think about it; you might have decided to leave the rental market, but the demand for rental properties is consistently huge. If you’re thinking of making a real estate investment and you get an alternative opportunity – working/living abroad, travel, or even a job elsewhere in the country – you can always rent your property out. This gives you immense freedom; your tenant will pay your mortgage for you while you go off on your adventure. Yes, there are landlord duties to be aware of, but you can hire a property manager, and disappear off, without a worry.
Is the alternative an investment?
In short, no. Rental might seem cheaper in the short term, or more manageable, but in the long term all that money goes into a landlord’s pocket and gives you nothing in return. You pay your way but you don’t have any security; the building could sell, your finances could alter, all kinds of things could happen. But when you own your own property you at least know you’ve always got a roof over your head.
Seek reputable help
There are people out there who have the expertise to assist you. For instance, we chose a Brooklyn real estate agency with people on hand for every query – from where to buy, what kind of real estate construction to consider, and even, the potential for rental if our own circumstances change. Having advice on hand as we need it has been invaluable.
Climbing the ladder, gaining assets
Another consideration is that if you want to buy a bigger home later, your early real estate investment becomes collateral. You buy, you sell at a profit, you upgrade and expand – the property ladder is an effective way to increase your assets, while staying in rental accommodation will never assist you in this way.
In short… if you do your homework, seek the help you need from an experienced real estate agent, and handle your finances properly, buying property is definitely an investment – and joining the ranks is an exciting opportunity.