The past 12 months showed the aftermath of the COVID-19 pandemic in the real estate industry. Companies gave up their office spaces to work from
Investing in real estate can be overwhelming especially for first-timers. If you dive into this industry without prior experience, it’s easy to get intimidated by all the terms, conditions, and decisions you have to know and prepare for before making a move. And it’s no small amount to consider this as your first investment experience.
While no single strategy works for everyone when dealing with realty investments, there are considerations you can take into account to put your best foot forward in the game. For first-time real estate investors, get ready to take notes as this article lists down some practical tips to help you get started.
1. Research, research, research
Much like engaging with other acquisition opportunities, you must study real estate investing first. Brush up on the fundamentals of real estate property management by reading books penned by experts and professionals in the field.
Then look for effective investment strategies to guide your game plan before, during, and after purchasing your first condo should you decide to go that route.
Familiarize yourself with the laws both landlords and tenants are obligated to observe as well. Understanding basic rights such as lease requirements, security deposits, and eviction notices can help you prevent unwanted legal situations and fines in the future.
2. Keep your finances in check
One of the biggest mistakes you can commit as a first-time investor is underestimating the costs that come with property investment. Remember, these things are a financial commitment, and although they’re a lot more secure than a gamble, real estate investments can still take more than they can give.
Before taking the plunge, be sure to go over your financial situation first. Review your cost of living and financial statements then create a projection out of those numbers to ensure that you can be financially stable even after months of making the purchase.
3. Set a budget
Unfortunately, investing in real estate isn’t an easy, one-time transaction as one would hope. Apart from setting aside capital for the purchase, you also have to think about the expenses for running and managing the property. Here, we’re talking about maintenance, repairs, renovation, taxes, and insurance.
To steer clear of miscalculations for your first investment, create a budget that will cover every impending fee in the process. Make sure to allocate an emergency fund, too, for backup. This way, you can be sure to maintain a positive cash flow, whatever the circumstances may be.
4. Follow a timeline
Besides drafting a budget, you need to develop a timeline you can follow to track movements in your investment.
While the market does fluctuate now and then, establishing a schedule on when you can reap a certain amount of return for your residential or commercial space can be valuable. With a timeline, you can distinguish which efforts in maintaining the property have been effective or otherwise. This timetable of goals also sets monetary expectations, allowing you to improve strategies to add more value to your investment.
5. Scout for the right location
One key factor that differentiates a good real estate investment from a bad one is its location. As a first-time investor, you must take the time to check out several sites before settling into one.
Although opting for a place close to the metro is convenient, try not to limit yourself to just the options in your area. Branch out to neighboring cities or even go out-of-town to scout for properties that best suit your budget and goals.
A prime location outside of Metro Manila you may want to look into is Cebu. In case you fancy a cross between a metropolitan area and a beach town, a condo for sale in Cebu might be the perfect choice for you.
6. Shift to an entrepreneurial mindset
Managing an investment is a lot like running a company, so switch to a business owner’s way of thinking when doing investor work.
Similar to an enterprise setting, concise and actionable plans drive the numbers forward in a real estate investment. Instead of immediately following the trend or impulsively going after the first property that catches your eye, you have to weigh all of your options before drawing capital and other resources. Again, your main goal in investing is to generate profits. So when in doubt, wear your entrepreneur hat on!
7. Seek professional advice
Aside from outlining investment plans, reviewing financial reports, and researching for ideal locations, partnering with an experienced professional in the field is crucial, especially for newcomers in the real estate industry.
While a quick search on the internet can get you answers to your questions, there’s nothing like learning directly from a skilled investor. If they start sharing their past experiences on the job, note how they pulled off a win or bounced back from a loss. Take this opportunity to seek expert advice, particularly when you need to make an important decision in your investing process.
Start Investing in Real Estate Today
Then and now, real estate investments demand a lot of preparation and evaluation. Done right, this option can bear fruitful results. With a checklist of the groundwork now laid out for you, it’s time to tick off the boxes one by one.
If you’re searching for a property to invest in at the center of trade and commerce in the Visayas, look no further with Mandani Bay! This waterfront development of mixed-use properties is on the rise to becoming Asia’s next urban landmark, making it stand out among other real estate picks in the country today.
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