Best Practices when Investing in Real Estate

Real estate investment is one of the most solid and secure investments you can make. Indeed, aside from investing in gold there perhaps isn’t a more stable choice for starting or expanding your investment portfolio.

Whatever route you choose to take, you can make a steady passive income and see your home increase in equity as the years pass. Very rarely will real estate lose value over time and even if it does, the losses will pale in comparison to some of the losses you might see with less stable and more unpredictable investments.

But if you’re new to the world of real estate investment, what tips should you be following to ensure you are making the most of the opportunity? Allow us to help you with a few top tips and explain how getting started in real estate investment is easier than you might think.

Flipping

Decide early on whether you’re planning on renting out the property or flipping it as this will have a direct impact on the kind of property you invest in. If you want to make quick money then flipping is the logical option but you will likely need to invest a great deal into renovating and repairing the home to increase its value before selling it on. This could take months and there’s no way of knowing exactly how the real estate market could look by then, particularly in these unstable times.

Renting

Renting the property, either yourself or through a letting agency, is a more long-term plan that could be a great option if you’re looking for a retirement fund and passive income that could last potentially for the rest of your life. If you’re renting, you might have to spend less on renovation but you’ll still need to make the property habitable.

Making it Sustainable

Sustainability is a major buzzword right now but it’s so much more than just an empty phrase. A home that is more sustainable is not only worth more but will be seen as more desirable when it comes to resale. So, if you’re buying an older property, one of the first places you should be looking is the sustainability and energy efficiency of the home. Consider solar panel installation for better energy efficiency, cavity wall installation and having a smart meter set up as a bare minimum.

Consider REITs

If you prefer to be more hands-off with your investments, then an REIT might be a safer bet. Real estate investment trusts are a way of investing in real estate without physically buying property. It’s an investment in the more traditional sense and they can pay high dividends, which makes them very popular among retired individuals. But they can also be complicated and are not easy to sell or value as you only own a fraction of a property.