Every day we see people turning to real estate as an investment option. It offers the financial benefits of a second income, or money to live off of when you no longer wish to work. Sounds good, right? Before you reach into your pockets, here’s a few do’s and don’ts for the beginner investor.
Do: Set Your Financial Goals
It’s tempting to jump right into that first property. You’re ambitious. You’re excited. But first, think about what your expectations are for your investment. What are your financial goals? Include both factors of time and money, and write them down. If you’re unsure of what your financial goals are, that’s a good sign that your first step should be meeting with a financial advisor. If you know your goals, you’ll know what to look for.
Don’t: Buy the First Property You See
Too many young investors buy properties because their aspirations are greater than their experience. The first time you see a tempting property, pay attention to it. Note how long it stays on the market and what it sells for. Once you get more familiar with Redding real estate trends, you’ll know a good deal when you see it.
Don’t: Be Afraid to Take Risks
Of course, there’s the other side to this coin. There may be no such thing as the perfect property, so eventually you have to pull the trigger. Every investment comes with risk. Make sure you’re prequalified so you can trust your instincts and be ready to buy. The good new is, property is a finite resource. Property is a finite resource. It will always be a game of supply and demand, making it a generally safe investment.
Do: Know Your Responsibility
Redding real estate investing has been around as long as land ownership. Most commonly, a person will buy a property and rent it out to a tenant. But that doesn’t mean you’re footloose and fancy-free. The owner will be responsible for the mortgage, taxes, and property maintenance. Perhaps the biggest difference between a rental property and other investments is the amount of involvement you’ll have in order to reap your investment. Are you up for the challenge?
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