Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
In Just 45 Mins., Learn to Spot New Opportunities in ANY Market for FREE! - 25th April 19
If This Pattern Holds True, the US Economy Could Face the Worst Stagnation in History - 25th April 19
8 Reasons Why Investment in Education Always Pays Off - 25th April 19
Want To Earn A Safe 5% In Fixed Income? Buy Preferred Stocks - 24th April 19
Can Gold Price Rise Without a Rate Cut?  - 24th April 19
Silver’s Next Big Move - 24th April 19
How Can a College Student Invest Wisely? - 24th April 19
Prepare For Unknown Stock Market Price Action As New Highs Are Reached - 23rd April 19
Silver Plays a Small but Vital Role in Every Portfolio - 23rd April 19
Forecasting 2020s : Two Recessions, Higher Taxes, and Japan-Like Flat Markets - 23rd April 19
Gold and Silver Give Traders Another Buying Opportunity - 23rd April 19
Stock Market Pause Should Extend - 21st April 19
Why Gold Has Been the Second Best Asset Class for the Last 20 Years - 21st April 19
Could Taxing the Rich Solve Income Inequality? - 21st April 19
Stock Market Euphoria Stunts Gold - 20th April 19
Is Political Partisanship Killing America? - 20th April 19
Trump - They Were All Lying - 20th April 19
The Global Economy Looks Disturbingly Like Japan Before Its “Lost Decade” - 19th April 19
Growing Bird of Paradise Strelitzia Plants, Pruning and Flower Guide Over 4 Years - 19th April 19
S&P 500’s Downward Reversal or Just Profit-Taking Action? - 18th April 19
US Stock Markets Setting Up For Increased Volatility - 18th April 19
Intel Corporation (INTC) Bullish Structure Favors More Upside - 18th April 19
Low New Zealand Inflation Rate Increases Chance of a Rate Cut - 18th April 19
Online Grocery Shopping Will Go Mainstream as Soon as This Year - 17th April 19
America Dancing On The Crumbling Precipice - 17th April 19
Watch The Financial Sector For The Next Stock Market Topping Pattern - 17th April 19
How Central Bank Gold Buying is Undermining the US Dollar - 17th April 19
Income-Generating Business - 17th April 19
INSOMNIA 64 Birmingham NEC Car Parking Info - 17th April 19
Trump May Regret His Fed Takeover Attempt - 16th April 19
Downside Risk in Gold & Gold Stocks - 16th April 19
Stock Market Melt-Up or Roll Over?…A Look At Two Scenarios - 16th April 19
Is the Stock Market Making a Head and Shoulders Topping Pattern? - 16th April 19
Will Powell’s Dovish Turn Support Gold? - 15th April 19
If History Is Any Indication, Stocks Should Rally Until the Fall of 2020 - 15th April 19
Stocks Get Closer to Last Year’s Record High - 15th April 19
Oil Price May Be Setup For A Move Back to $50 - 15th April 19
Stock Market Ready For A Pause! - 15th April 19
Shopping for Bargain Souvenirs in Fethiye Tuesday Market - Turkey Holidays 2019 - 15th April 19
From US-Sino Talks to New Trade Wars, Weakening Global Economic Prospects - 14th April 19
Stock Market Indexes Race For The New All-Time High - 14th April 19
Why Gold Price Will “Just Explode… in the Blink of an Eye” - 14th April 19

Market Oracle FREE Newsletter

Top 10 AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

The 5 Rules of Real Estate Investment

Housing-Market / Buy to Let Jan 22, 2019 - 02:02 PM GMT

By: OutreachMama

Housing-Market

Like every other form of investing, your primary goal as a real estate investor is to always be in the green. To do that, you have to balance your relentless pursuit of opportunity with an eye for safe deals. By applying the below strategies to your real estate investment, you increase your odds of making the right decisions consistently.


  1. Focus on the Long-term

Unlike stocks, real estate assets do not experience huge price changes over short periods. That’s why every buy or sell decision you make in real estate should be hinged on long-term objectives. Think about how the value and return of each asset will play out over the next 5 years at least.

Still, the long-term focus shouldn’t be misconstrued to mean rigidity. Even when you have a 20 or 30-year strategy, it’s best to break it up into 5-year chunks that make it easier to monitor progress and quickly respond to unexpected events. Remember that no plan, no matter how well it’s laid out, has guarantees. Disruptive and unforeseen market changes can transform what was a profitable investment into one you should be looking at exiting as soon as possible.

  1. Supply versus Demand

The real estate market is driven by changes in the supply and demand of property. The most successful real estate investors are those that can sniff out markets bursting with demand so they can position themselves on the supply side.

You won’t be the only one joining the supply side though, so the dynamics of supply and demand are never static in perpetuity. You have to keep an eye on the market so you can identify shifts that could wipe out your profits. Note that you can stimulate demand through branding. Branding your property can make it attractive for buyers and renters.

  1. Think Micro Not Macro

National news can be pretty misleading or incomplete when it comes to the state of real estate in a country. Such widely focused news often inadvertently glosses over highly profitable pockets of opportunity that may still exist despite what may seem like a nationwide wave of turmoil.

Such heterogeneity is especially likely in large countries such as the United States, Brazil, Russia and Germany where the real estate market isn’t a monolith. The state of the market on one end of the country may be starkly different from what is happening on the other end. Ergo, always keep an eye on the opportunities at the local level.

  1. Brace for the Worst

When buying, selling or seeking financing for real estate, don’t be carried away by excessive exuberance. Always be prepared for the worst. Under no circumstances should your projections be based on the best-case scenario. Doing that could completely wipe out your investment if the worst case were to materialize.

Think about what could go wrong. For example, your closing costs may be higher than you anticipated, property repairs may exceed the budget, or your real estate agent may be unreliable. Develop contingency plans that would kick in when these unpleasant scenarios materialize. Contingency plans could include tapping into a personal loan facility (e.g. see simplepersonalloans.co.uk) to cover unexpected closing costs.

  1. Know that You Cannot Control Everything

You cannot be a consistently successful investor if you do not plan. Research, understand the market, be ambitious, know the boom and bust supercycle, and make sure you are in the right place at the right time. Nevertheless, no person or entity is big enough to control every aspect of the market.

Despite the most elaborate planning, certain events are always beyond your domain of control. When they do occur, don’t panic. Breathe deeply, relax and acknowledge that there’s nothing you could do to prevent such events. Instead, understand that such unexpected incidents can work to your advantage as long as you position your property portfolio accordingly.

These are the most important rules for investing in real estate. Still, while these tips are crucial, always keep an open mind. Don’t crash and burn in rigidity.

By OutreachMama

© 2018 Copyright OutreachMama.com - All Rights Reserved

Disclaimer: This is a paid advertorial. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules