Real estate is arguably the most profitable and safest investment strategy and there are many people around the world who have become independently wealthy due to real estate investing and this is because everyone needs a roof over their head. In Australia, in particular, there are more people entering the country than there are residential construction approvals. Do your math, it stands to reason that property prices are going up regardless of what the economists say, sure there will always be downturns in the market, but you can beat them if your real estate investment advice was sound in the first place.
Obviously, you’ll need some good real estate investment advice, such as the best place to invest and how much money you can afford to borrow and how to use the real estate investment tax.
There are many forms of residential property investment strategies, such as wholesale real estate investing and wholesale, that you could adopt, but just remember your level of outlay and risk. You need to get your amounts exactly right when paying out costs for renovations etc. Also know how much it will cost you to maintain the property, in other words, you have to consider how good your cash flow will be, but there are ways to be a successful real estate investor and profit from those investments regardless of a downturn in the economy.
The recommendation is to use someone else’s money as:
- The most obvious, borrow from a bank
- Use the equity in your own home as leverage.
- Get permission to use other people’s wealth to get a deposit bonus.
- Exchange tax for real estate.
- Set up a trust and use your retirement fund.
Use your own money to automatically pay more on your home mortgage since this is tax-free and ALSO pay in bi-weekly installments, cutting years and thousands of dollars off your loan.
My advice is to keep your job, make sure and plan for any adversity, know how to budget, keep your head and not panic.
If you have any concerns, do what all good real estate investors do, go back to the experts and get some peace of mind and reassess your situation and find out if the market is really as bad as the papers tell you to be. In fact, he throws the newspapers out the window. Do not read them, their figures are outdated and fed by sensationalism. Stay focused on your real estate investment strategy and add it to your portfolio as soon as possible. Investing in rental properties is based on your long-term wealth.
I realize there is a lot of advice out there about buying houses, upgrading them for quick selling or renting, and other similar strategies, but keep the following in mind:
- Rehabbing homes means shelling out money you’re putting at risk.
- The houses attract families and children, which means a lot of maintenance costs.
- Old and new units near universities means heavy-handed young adults which means high maintenance costs.
- Old units and old houses don’t attract good tax breaks from the government, remember the property exchange tax?
On the other hand, new units in fashionable areas, close to entertainment venues, good restaurants, shopping centers and train stations and in big cities are always present. This is where people are knocking on doors to rent, don’t stay open to vacant houses, want new modern units with all modern conveniences, expensive? Remember not to focus on the cost of the unit; focus on your cash flow which is what really matters.
Go ahead and use this free real estate investment advice and prepare for the future, retire early. But remember to always seek financial advice before venturing into any investment venture.
Happy investing!
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