Property Investment – The Ideal Route To Wealth Creation

Property investment is the ideal route to wealth creation and financial well being. 

Irrespective of the investing strategies opted for, property has proved to be one of the safest methods of making money with lower risks and higher gains.

Other investment channels have proved to be less secure and highly volatile.

Property is the only tangible asset that helps to raise funds for emergencies and also the only investment whose value can never be down to zero.

However, property investment needs knowledge and experience, since a wrong buying decision can prove to be an expensive one. In order to avoid being straddled with a wrong property investment, a few tips can be followed.

Tips for property investing

  • Know the market first- the first essential step towards property investing is gaining knowledge. Till you know the property market well, it is impossible to make a good buying decision. Additional information about mortgage options, lease options, tax benefits and investing strategies all help to move on the right track of property investing.
  • Select the location carefully- the best returns on property investments are linked to location. A good location includes secure environment, access to transport, amenities and has growth potential. Such property will always see high returns in the long term.
  • Take the right mortgage plan- most properties are purchased not through personal funding, but through mortgages. This helps in buying a property that may otherwise be out of reach, payment terms are easier to meet, and if rented out, the rent helps to cover the mortgage dues. However, the fine print of the mortgage laws and the plan taken must be scrutinized so that the burden is bearable and the terms flexible.
  • Use an experienced broker- While most people believe it is not difficult to invest in property oneself, a broker is preferable since he can do the groundwork of finding properties that meet your requirements, help you find the financing required, select the right mortgage plan, take care of the legal procedures and any other formalities required. Brokers come for a price, but the services received make up for it.
  • Seek positive cash flow properties- Positive cash flow properties are preferable since they ensure a regular inflow of cash, and this helps to fund the mortgage payments and enhance financial security.
  • Select properties that can be upgraded- Buying a property to which value can be added helps, since this will upgrade the property and it can be sold for a much higher price and increase the profits and returns from it.
  • Search for distress sales- Distress sales are made by owners who need money urgently and are willing to sell their property for a price lower than its value just to get cash as a lump sum and immediately. Those who can afford to make such cash payments can make a killing out of such properties, by selling them at a much higher price later.

Property investing is a good option to achieve financial freedom, add to personal wealth and have a long term asset for the future.

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