Is Real Estate a Good Investment
US REAL ESTATE EQUITY BUILDER KANSAS CITY
ď‚— Real estate is generally a great investment option. It can
generate ongoing passive income and can be a good long-term investment if the value increases over time. You may even use it as a part of your overall strategy to begin building wealth.
Pay With Cash ď‚— Many financial experts warn against borrowing money
to purchase investments. You should consider this before you purchase a piece of investment real estate. If you can’t afford to pay cash for the home, at the very least, you should be able to afford the mortgage payments, even without rental income.
Plan out All of Your Expenses ď‚— When purchasing real estate for investment purposes,
you need to consider the cost of taxes, utilities, upkeep, and repairs. Often it is easier to go through a rental company and have them handle things like repairs and rent collection. While this will cost money, it will help ease the burden of owning a rental property. Especially if you don’t have time to do everything that needs to be done at your property, using an agency is a good option.
Research the Property Carefully ď‚— If you are purchasing land that you plan to sell at a later
date, you need to research the land deed thoroughly. Find out if any new roads are planned close to the land you purchase and consider how that will affect the property value. Also, be sure there isn’t a lien on the property. You may also want to consider things like the comparables in the neighborhood, including whether the area is up-and-coming, and other external factors that could affect the property value.
Start Small ď‚— Some real estate investors begin by purchasing a duplex
or a house with a basement apartment, then living in one unit and renting out the other. This is a good way to get your feet wet, but keep in mind that you will be living in the same building as your tenant.