6 Tips for the Real Estate Investor

Charleston SC homes for saleProperty investing is significantly different from investing in shares, bonds and stocks and it can be overwhelming to new investors. If you are one among those, knowing the below six key elements can be vital to deciding your success in real estate market and how well you achieve your desired goals. So, check out this info from our friends at Charleston SC homes for sale – Premier One – Real Estate for Everyone:

  1. Choose the right property

Investing in real estate is generally all about capital growth, thus picking a property that’s more likely to boost in value is an essential decision you’ll make. If the property is near to a CBD, public transport, universities or schools, it is very likely to grow by a lot more than the average in a steady market and is likely to retain it’s value in a down market. As a new investor, a condo that’s near a university or public transit is a good move.

  1. Evaluate the tax situation

Taxation is an integral element of effective and successful real estate investment, and it often makes the difference between a positive and a negative cash flow. Completely assess the current tax situation, and find out how it could be manipulated to your benefit.

  1. Realize the exact costs going in

Be aware of financial statements back to front. What exactly are operating expenses? What are vacancy costs? Loan payments? Taxes? These are a few key issues that must be sorted out before investing in real estate.

  1. Don’t get over-extended

People usually run into trouble when they commit too much initially, believing they could recoup quickly. So, start small and do not invest funds that eat out of your current savings. Investing in real estate in the beginning must be a supplement to your current plans and definitely not a replacement. Eventually, if you see amazing results, you can always re-evaluate.

  1. Inspect
    Ensure that you always perform a detailed inspection of the property or home before purchasing it. In most cases, hiring qualified inspectors to look at the structural / architectural mechanical system could be a sound decision.
  2. Consult with the Experts

If you are a new investor, don’t do it yourself. There are many real estate experts available who could help you make a beneficial and good choice. You may want to consult a real estate agent, mortgage broker, financial planner, tax expert, lawyer and other people who’ve already invested in real-estate.

Hopefully the tips above can get you started in the right direction towards a positive cash flow.  Read more on investment in real estate: http://www.forbes.com/sites/robertlaura/2014/07/24/scottmcgillivray/