Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
Gold Price During Hyperinflation - 12th May 21
Stock Market Extending Phase Two? - 12th May 21
Crypto 101 for new traders – ETH or BTC? - 12th May 21
Stock Market Enters Early Summer Correction Trend Forecast Time Window - 11th May 21
GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
Cathy Wood Bubble Bursts as ARK Funds CRASH! Enter into a Severe Bear Market - 11th May 21
Apply This Technique to Stop Rushing into Trades - 10th May 21
Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
CHIA Getting Started SSD Crypto Mining by Plotting and Farming on Your Hard Drives Guide - 9th May 21
Yaheetech Mesh Best Cheap Computer /. Gaming Chairs on Amazon Review - 9th May 21
Breaking US Trade Embargo with Cuba - Build 7 Computers in 14 Hours Before Ship Sales Challenge - 9th May 21
Dripcoin Applies New Technology That Provides Faster Order Execution - 9th May 21
Capital Gains Tax Hike News: Was It REALLY to Blame for Sell-off? - 7th May 21
Stock Market Transportation Index Continues To Grind Higher - 7th May 21
SPX Stock Market Correction Arriving or Not? - 7th May 21
How to Invest in an Online Casino? - 7th May 21
Gold & Silver Begin New Advancing Cycle Phase - 6th May 21
Vaccine Economic Boom and Bust - 6th May 21
USDX, Gold Miners: The Lion and the Jackals - 6th May 21
What If You Turn Off Your PC During Windows Update? Stuck on Automatic Repair Nightmare! - 6th May 21
4 Insurance Policies You Should Consider Buying - 6th May 21
Fed Taper Smoke and Mirrors - 5th May 21
Global Economic Recovery 2021 and the Dark Legacies of Smoot-Hawley - 5th May 21
Utility Stocks Continue To Rally – Sending A Warning Signal Yet? - 5th May 21
ROIMAX Trading Platform Review - 5th May 21
Gas and Electricity Price Trends so far in 2021 for the United Kingdom - 5th May 21
Crypto Bubble Mania Free Money GPU Mining With NiceHash Continues... - 4th May 21
Stock Market SPX Short-term Correction - 4th May 21
Gold & Silver Wait Their Turn to Ride the Inflationary Wave - 4th May 21
Gold Can’t Wait to Fall – Even Without USDX’s Help - 4th May 21
Stock Market Investor Psychology: Here are 2 Rare Traits Now on Display - 4th May 21
Sheffield Peoples Referendum May 6th Local Elections 2021 - Vote for Committee Decision's or Dictatorship - 4th May 21
AlphaLive Brings Out Latest Trading App for Android - 4th May 21
India Covid-19 Apocalypse Heralds Catastrophe for Pakistan & Bangladesh, Covid in Italy August 2019! - 3rd May 21
Why Ryzen PBO Overclock is Better than ALL Core Under Volting - 5950x, 5900x, 5800x, 5600x Despite Benchmarks - 3rd May 21
MMT: Medieval Monetary Theory - 3rd May 21
Magical Flowering Budgies Bird of Paradise Indoor Grape Vine Flying Fun in VR 3D 180 UK - 3rd May 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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