One of the many lucrative ways on increasing your wealth (besides dabbling in unit trusts and the buying and selling of shares) is to invest in real estate. But the question is, how do you know if the property you’ve found is a great investment opportunity?
Here are 3 things that you need to know before kick-starting your real estate investment:
- The property meets your objectives
Finding the right property to invest in depends on your objectives. If your objective is to make a profit in positive cash flow, you need to find a property that will bring in the revenue. It is usually easier to obtain positive cash flow from a multi-unit property, such as a house with a basement suite wit a duplex, triplex or a small apartment building with 4 or more units.
- The property is located in a growing market
The next thing to consider is market growth. Browse the local papers for news on the real estate market, learn of new plans for infrastructure and get some sense of population shifts are what you can do to secure your investment. You can visit your government websites for census information and population demographics.
- The property is in an area that is constantly improving
Your objectives will depend on your area of investment. If you want a fuss-free property, you should look for an established area. If you are unable to afford investing in established areas, you might want to go for a neighbourhood that is still growing.
Finding an investment that is worth your time, money and effort may seem like a challenge but it doesn’t have to be that way. As long as you do your research on the economy, vacancy rates and population changes, you will be on your way to finding the right property for investment.
