Your Property Investment Strategy Determines Your Future Returns

Your Property Investment Strategy Determines Your Future Returns

I have a dream! That is the sweetest vision every dreamer wants to fulfill in their lives, whether is the dream to own a real estate company, your dream of driving the best sports car or even better private schools for your children. All dreams are valid, as long as you put them down and turn them into goals and objectives.

One of the biggest mistakes that people make when they want to achieve a certain goal is making the wrong move at the wrong time. That said, you need to understand the ebbs and flow of the market.

Real estate growth

In property investing, your market knowledge is paramount. For a better return on investment, you should be able to calculate the financials of the property – how much is the purchase price? How much is the maintenance fee? How much are the rent fees? A simple rental property analysis can carry you a long way.

Another set of factors that you should consider is the local real estate outlook – is the property price below the market value? Is the local area growing in term of population and opportunities?  Is there a new development area in the region?

After you determine the trends, you should work on ways to ensure better returns on your investment.

Assurance for better Returns depends on your Choices

There are many factors that one should ensure before investing in any property investment.

Firstly, you shouldn’t blindfolded by the promise of quick returns. You should aim for the long game.  In property investing, longevity is the key.

Your success in property investing will depend on the type of advice on property investment that you may have heard or considered before. To make it easier the following are general guidelines on property Investment.

Security

How secure is your property investment? This is the first question that one should always ask themselves when considering to invest in any property.A good investment should facilitate a room for security. An investment without security is like dipping your cut finger in an ocean full of sharks; doing so, you should be ready to lose your whole arm (you will lose all your property investment with a bang!).

Period for Return on Investment

A great property investment should not have a very long period on returns. One of the better advice on property investment period is that you should not go leaving your property empty especially for landlords.

You may want to void period on your investment, a void period is simply known as the length of time when a buy-to let property is vacant, when there is an extended void period especially on vacancy it can reduce overall returns on the property and in the future decrease the profitability of the whole property investment.

Property owners renovating house

What You Should Consider doing in Cases of Void Periods

It is obvious that once or twice a residential property investment will become vacant at some point, this is the period that the landlord should consider doing the following on his or her investment.

Maintenance Period

The landlord or the investment property owner should consider using this time to do some renovations on the house, especially in critical places such as the washrooms, kitchen sinks and laundry machines.  where most of the tenants tend to make a mess or destroy the property, this will create better chances of the house in the market.

Takeaway

Among all other type of investment, property investment offers substantial ROI – if you do it right. That said, you need understand the economic cycle of real estate investing, so that you can determine where to buy a property, and when.

Learn as much as you can about property investing before you take any action. Also consider to contact a knowledgeable real estate broker that can share the local market analysis with you, so that you can make a well-informed decision.

Ivan Widjaya

Ivan Widjaya is the Owner/Editor of Noobpreneur.com, as well as several other blogs. He is a business blogger, web publisher and content marketer for SMEs.