You’d like to invest in real estate … someday. Whether that day is just a few months away or years down the road, there are a few things you can do today to get ready for a future investment. Before you decide to purchase property to turn a profit, it helps to know as much as you can about the market, what you plan on doing with the property and about the costs of investing. In this article, we will discuss how to Get Ready for a Future Investment in Real Estate.
Research the market
When planning a future investment, you want to have a good grasp of the real estate market. You want to pick a market that will see gains in real estate or that is currently undervalued, so that the value of your investment will increase. For example, according to CNBC, investors are currently looking at foreclosed homes in Atlanta, which is increasing the value of homes across the area. While Atlanta might be a good place for investing now, if home prices continue to rise, it might not be by the time you’re ready to invest.
Come up with a plan
As you research the market, it also helps to start developing a plan for your investment. You can turn a profit from a property in several ways, from flipping a house to renting out a multifamily home.
Part of coming up with a plan for your investment is looking into several neighborhoods in the area. Ideally, you’ll be buying an area that people want to live in or an area that is up and coming but still affordable. Do your research by exploring a few neighborhoods, hanging out at popular places and getting to know the people who live there.
Have enough money on hand
You’ll have to have some way to fund your investment, so that means saving up for a down payment. Mortgages work slightly differently for investments than they do for residential properties. You will most likely have to put down at least 20 percent of the property’s value and may have a higher interest rate.
Just as when you purchase a home to live in, the cost of the mortgage isn’t the only thing to think about. You’ll also want to have enough money set aside to cover the cost of repairs, utilities and other little surprises that can crop up when you own property.
Find other investors and support
If you’re thinking of investing in Atlanta real estate, you don’t have to go it alone. Duffy Realty of Atlanta can help you find the right property to purchase. You can also learn more about the ins and outs of investing in the area by meeting fellow investors through a nonprofit organization such as the Georgia Real Estate Investors Association. No matter when you decide to make the leap into real estate investing, preparing in advance and becoming familiar with the market, real estate agents and other investors will benefit you in the end.
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