Bring up property investment topic in a party and you will likely hear ’N’ number of opinions on why you should not or why you can’t — get into. The real estate industry has built up a reputation for being hard to break into, and this is the only reason why many potential property buyers keep their dream of investing in a property to themselves.
Investing in a commercial property for sale is both practical and profitable for anyone, however to reap maximum benefits, we need to dissipate a couple of common myths.
1) You should be rich to put resources into real estate
The vast majority of common people assume that you should be rich to get into or even understand the realty game. However in reality, there are multiple ways to start a property portfolio that too without putting much of your resources. The most common among them is to partner in projects invested by investors who are money rich, yet lack either skill or time. These investors can be family, friends or complete strangers — you will be surprised when you will see how many people in the market is waiting for the right people and right opportunities to put their resources to work.
Tip — If as an investor, you have done your homework perfectly, found a perfect, promising and legitimate project and promoted it aptly, access to capital gains will never be out of reach.
2) All Debts are bad for you
Our parents taught us that any debt is bad debt and one should be scared of borrowing money from others and when such people are told that borrowing money can actually be good, the idea may feel against their teachings. However, when it comes to property dealings, financial help from banks and financial institutions is a great tool at your disposal. This financing will help the buyers to make money faster than we can ever be able to make on our own.
3) It is impossible for someone with bad credit score to invest in property
A good credit score is important if you want to take financial assistance from a bank, but as mentioned above, there are many financial institutions who are ready to finance your deal provided you pass on their terms and conditions.
4) Real estate is a long-term investment
The old-fashioned approach to real estate investment is to invest at market value, utilize rental income to pay the bank installments and just pray and hope for long term appreciation. Despite the fact that the strategy is the legitimate one, it will take years to book profit and people today look for immediate rewards and thus no one wants to wait for years before their property delivers monetary benefits.
Contrary to the above myth, investment in property can be income positive from day one. All you need to ensure is that your rental income takes care of your expenses and if possible, save a little extra. It might sound high dreams (and clearly impossible when investing at market value), yet is perfectly feasible when you start looking for buying options through multiple channels.
Tip — Private sales, bank repossessions, auctions, etc. all have the potential to offer good and almost immediate benefits. All you need to do is recognize the best opportunity and do the math before pulling the trigger.
5) There are no good opportunities left in the market place
One thing that is absolutely true for the real estate market is — it is volatile, which means it is constantly shifting. Buying and selling opportunities might not remain same all the time but they are always out there. The best and easiest way to bank on them is to establish trust and business with reputed names and brands and tap the benefits as and when needed.
Irrespective of whether you are flipping residential properties, looking for a commercial property for sale for personal use or to grow your rental portfolio, there are projects available that will meet your needs. Explore the projects, talk to the experts and then invest in your property. You will be amazed when you will see there are a huge number of opportunities available for you to explore and invest.