Wednesday, February 26, 2014

Real Estate Investment – Building Wealth - On the Side

These days we see people don’t give much importance to savings, they want to spend more than they earn. Although our predecessors, always told us the importance of saving and they used to be really careful and participative with that. One is the saving in the bank, and another which grows exponentially is with real estate.

I am not giving here any guidelines for savings but real estate if chosen with care, is building wealth side by side, you need not be full time on with it, but even with right market knowledge and guidance one can on parallel along with existing business or job can create valuable lifetime assets.

Another reason why creating real estate wealth is important, I have seen people working in a job, where they are absolutely despised with it. Each day is worse than the previous one, so it is in a situation like this that you spend all your free time devising a way to get out of that job. You just need to fell head-over-heels in love with real estate investing and trust me you will not have to look back ever, if you play your cards right. With right property portfolio, you shall have cash flow enough to pay your bills. On the other hand, even if you love your job and would never dream of quitting, still invest in real estate, but in a different way than the category above, for them its full time career, for you it is building assets for your life, post retirement.

Principle number one for investing is to relax about investing, and gain a little motivation. Whether you are a brand new investor and struggling over the hurdles of getting started, or you are a more advanced investor and just hitting the usual obstacles, it always helps to take a deep breath, exhale, and calm down. Now doing the first things first, how much you are ready to invest and how much credit you can get to invest?

Now check which side of the city is growing, where are the upcoming projects, so that there is a potential of exponential return on your investment. Where prices have already gone up, there the return is less; it reaches the stagnancy and saturation point faster. Now do the right amount of due diligence of the project, location and developer involved. Comparative market analysis shall help to check the right pricing. If all these steps are taken in righteous manner, you can avoid the majority of unexpected!

If you don’t know it on your own, ask how to do it. Trust me this this is tried and tested and it has been extremely helpful. If you ever want to do something, there is a way to do it. You just have to find it and not reinvent the wheel on your own. So don’t ask whether it’s possible or not, figure out how it can be done. There is a way. Ask the experts, talk to brokers/ consultants working in that particular region. Ask questions. I had so many questions in red ink when I started out that I dare you to think you can ask more than I did. Don’t hold back because you think it might be a stupid question!

The idea here is building up lasting wealth using real estate as the tool to get there. The point I am trying to make is it is possible to have a career in real estate investing without investing in real estate and it is possible to invest in real estate without having a career in it. But ultimate goal is building lasting wealth. All the Best!!