Investing in Real Estate
Real estate has long been considered a conservative, long-term strategy to growing wealth. If you are considering investing in real estate, read through these helpful tips.
- Learn all you can. Before committing your money, have a basic understanding of real estate. Know it does not sell at a moment's notice. It can take days or months depending on the market.
- What are your financial goals? With each investment unit you'll need to consider cash flow, equity, appreciation, and depreciation. Discuss with your accountant tax liabilities and benefits.
- Start small. Leave large apartment buildings and commercial properties to the pros. Single family homes or duplexes may be a better fit for you.
- Find a property that will be in demand when you're ready to resell. Research it and surrounding areas. Most first-time investors suffer loss by failing to investigate a property thoroughly.
- Get an independent home, roof, and termite inspection. Unexpected repair costs can eat away resale profit.
- Be ready to make quick fixes and respond to the renter's need. If you're not prepared to be a landlord, consider hiring a property management firm.
Thankfully your Berkshire Hathaway Taos Real Estate agent can help. We have experience in investment properties and are happy to explain the market and sales prices of other rental properties in the community. Remember, investing in a property is much different than living in one and we are here to help.
Owning a Second Home
Second home ownership is building momentum. Today, demographics and technology are converging to create what can be a historic opportunity for both buyers and sellers. If you're thinking you'd like to have a getaway place not too far from home, a place to relax and recharge, maybe to use as a place for both work and play, now is the time to get the information you need to make an informed decision.
How can I determine my return on investment?
No one can predict the future but we strive to help you get through the hurdles that may come with a big investment such as this. Trust your knowledge about your local area and know that you're likely to make a better investment when it's closer to home.