Historically, investing in real estate has always been a safe bet when starting out or diversifying your portfolio. According to The Property Buying Company, property investment is always a solid option for any investment portfolio due to capital growth, being a staple source of wealth, withstanding inflation, and instant yield.
There are various routes into property investment, ranging from indirect routes like REITs to direct routes like directly purchasing a property to renovate and sell or rent out. Consider both time and money when planning your investment journey. Do you have the time to renovate a property for resale, or do you have enough money to hire a contractor to do it? Similarly, do you have sufficient funds to begin your investment journey? If not, it's time to start thinking about how to raise capital.
You can raise capital to invest in property in a variety of ways, including saving, selling property or investments you already own, or have capital tied up in. For those looking to start investing, or even if you are simply diversifying or expanding your portfolio, don't be afraid to start a joint venture. Collaboration with a friend or family member who has similar investment goals to you is always a good way to increase your capital.
Always do your homework before investing in real estate. If this is your first time investing in property, now is a good time to find a mentor, educate yourself, or even find a sourcing company that can offer advice and guidance on moving forward. You may have friends and family in the industry who can provide advice and tips. It is critical not to take on the largest portfolio at first; instead, start small and avoid overexposure. You can also go 50/50 with another investor, as previously mentioned. Investing locally first in an area you know is also important before taking on larger projects elsewhere.
When it comes to investing, trust your instincts; if it doesn't feel viable and will potentially adversely affect your investment goals, it's not for you. It's critical to think long term when investing in real estate. Will this property make you the money you need over a certain period of time? If you think the project is too big, it probably is. However, it is important to note that with any investment comes risk; if you are interested in investing in a specific property but are concerned about the risks, always seek guidance and help, and remember that mistakes will be made; it is the lessons we learn from them that pave the way for a successful investment future.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.