One can argue, times are tougher today, in the real estate business. At least tougher than what they were a few years ago, in a seller’s market. The real estate market has and continues to present its own unique set of challenges to investors, but let’s face it – there’s still money to be made in this business. If you are one of the fence-sitters in real estate investing, thinking about “the right time,” you need to think again! Because there really is no “Right time”! There are hidden opportunities in every market scenario and with the right approach, you can make a tidy profit from real estate investing.
Opportunities galore. Today, real estate investors can benefit from a greater number of opportunities than at any other time in the past. Why? Because there are a number of factors that has come together in creating these opportunities. Low mortgage rates, and interest rates mean it is still easy to find affordable financing. The inventory of homes is growing in single-family homes, duplex and multiplex homes, apartments, condos and investment properties. The buyer/seller interest remains robust across all these property scenarios. Add to that the home foreclosure rate, and it really is a good time to start investing.
There’s no perfect time. The savvy investor will tell you, there really is “No perfect time” to get into real estate investing! Real estate investing, just like any other form of investment, comes with its own risks and no guarantees. Trying to time the market can create longer than necessary delays, as you wait for the right cues. And once you do invest against the backdrop of “Perfect” cues, other non-controllable factors can mar your investment plans. Stock markets, interest rates, global property trends and local developments all shape the market. Before taking the plunge, you need to know the market, evaluate the risk/reward scenario, be prepared to take a risk and complete your due diligence – these aspects go a long way in generating positive investment returns.
Investment income. Unlike fixed income, passive income takes time to accumulate, and the sooner one starts investing in real estate, the closer one gets to building up passive income through asset appreciation and related capital gains. The good thing is that you don’t even need to put more capital into a property that you have bought, other periodic funding for property management requirements. And the rental income it generates for you over time, contributes towards your passive income. Over time, this income can cover the initial outlay for a second property, helping to move closer to your goal of building up a sustainable and profitable property portfolio.
Depending on the nature of your real estate investment, you can generate a strong return on investment over time. Having said that, there are many a case, where a rushed decision brought about by lack of due diligence, legal issues, insufficient market research or poor investment advice has led to huge losses and erosion of capital. So, if have made the decision to enter this investment asset class, don’t wait for the magical “right time” to start. Do your research, take the services of experienced and qualified real estate agents, realtors, property managers, investment houses and housing professionals in seeking out the right opportunity for you.
Most importantly – get started today!
