We get to hear, see and read all the time that buying real estate is by far the best and safest investment opportunity. It is a perception that goes with real estate investment unlike stock trading. But stock trading, again it is perceived to be, is that it comes with significant amount of risk. As a result, most people do not want to engage in speculative activities. But real estate is something which more people get involved in, basically because everyone at some point of time considers buying a home for himself.
However it should be remembered that no investment is entirely risk free, and everywhere a certain amount of due diligence is required. There is certainly no denying that fortunes can be made in real estate, but it holds equally true, that it is not an easy option. Investing in the right kind of real estate, at the right time, with right real estate agent isn’t always a cakewalk. Talk to people who have invested in real estate, they will vouch for it.
The bitter truth about real estate investment that nobody wants to talk about is the legal aspect of investing in real estate. The tedious long documentations, clauses, forms, deeds… it’s an exhausting journey, one long haul. If you are careful to not take shortcuts or bypass rules, you will have done a good and clean investment. For this you just need to tell yourself and get used to the idea that real estate investment will bear fruits only if legal procedures are followed.
The next most important thing to consider while investing in real estate is if it is within your budget. Can you afford it? Of course you will be given to understand that to meet your needs there is mortgage available. But don’t forget that mortgage is a major expense that comes with additional related expenses such as property taxes and energy costs and so on. Make sure that you pay as much money as a down payment as possible, so that the mortgage payments one has to pay will be less.
The 2008 global financial crisis caused by the subprime lending was the result of people buying homes that they couldn’t afford. If they had purchased homes that they could financially manage, then they could have waited for the prices of their property to rise instead of selling them at a loss in a hurry.
When purchasing a property, there are professionals who will assist you for a fee. Get a genuine, experienced and most important of all – local real estate agent to help you in your real estate investment. He will be able to help you in assessing the true value of the property. He will also attach you to a real estate lawyer who will take care of all the technical aspects involved in buying or selling of a home in the country.
Real estate investment is considered to be one of the surest forms of investments. But since it involves such huge sums of money, one should get involved in it with due diligence.