Understanding Real Estate Market
That's because investing in property is secured, you save money on rent, and you might even earn money from renting out your property. Sadly, not all people can invest in property because it requires a lot of money, when when you are buying a home through a bank loan, you still need a lot of money to make a down payment, and you need a stable income to pay back the loan
Making Money From Real Estate
Real estate is one of the safest ways to make money from your investment. There are several ways to earn money from real estate. The best one is buying property and then renting them out to collect rental income. The second popular method is flipping property, you buy and then sell. Renting is better option because it provides a steady stream of income even during market downturns. If you do not have money to invest, you can also make money as an agent. As an agent, if you sell property, you earn commissions. A single sale can give you enough earnings to pay for entire year bills.
Borrowing to Investing in Real Estate Property
If you buy a house for yourself, continue to pay mortgage fees for 20-25 years, and by the time you clear your debt, you will be too old to enjoy life. Do you think this is a good decision you will be making in your life? If you buy a house, you rent your house and generate income, you use your income to pay your mortgage fees and you generate cash flow from your investment. THis decision will be better rewarding financially. The decision to rent or buy should be base don what you intend to do with the property.
You can make money as a property owner in two ways, one, you put your property into rent and collect rental income, and two, you flip properties. The first method is easy. This method even allows you to start making money even when you do not have money to buy property. You can buy a property through a loan and start making rental income. The second method requires you to buy a property and then sell it back for a higher price. This process is called flipping property, and very profitable, however, you need a lot of money to get started.
There are a lot of ways to buy property, and one such common methods is getting a loan. However, this can be difficult if you are not earning much to be able to pay the mortgage. Therefore, a better approach is to save for a long time. You can do it by creating a personal budget, and allotting some money for your future property purchase. Whenever you receive your salary, you can save a portion specifically for "property purchase savings." You should keep your savings in high-yield savings accounts. You also need to compound the interest you receive on your saving. And in 10-15 years, you might have enough for property purchase.
Is Real Estate Better than Stock Market?
You need a lot of money to invest in the real estate market, however, you can start investing in the stock market with small funds. If you make a comparison between real estate and stock market, you will find that real estate is far more better than stock market. That’s because your stocks can lose value and not all stocks will generate dividends for you. Well, real estate can also lose value, thus affecting your real estate resale value. However, your real estate can also generate revenue even when the value of your property goes down. You can always rent your real estate property to generate income, and rental income will not be affected even when your property value goes down. Thus making real estate a safe investment.
Market Movement
If you pay attention to the market movement, you will see one interesting thing, when one market starts gaining value, another market will also start appreciating, and if one market starts depreciating, another market also starts losing value. For example, when the crypto market started losing value, it was not the only market that started going down, the stock market and housing market also started going down. Bitcoin was once $73K and now it is about $66K, however, you should also become aware that Tesla stock's current price is $284 but once it was valued at $900. The Crypto market has gone down, and so has the real estate market. The point is markets are co-related and move in synchronicity. if you are an investor, there is nothing to worry about the market going down, even when you invested at all-time high price because you can still flex your muscles to buy more.
Pitfalls of Real Estate Investment
Your money is safe when you save it in a bank, however, your money can lose value when there is inflation, therefore, in terms of financial value, it is not very good to keep your money in banks. Even for the purpose of receiving returns, bank accounts are not the best. If you do not want to invest because you are too afraid of losing money, and if you want to save money to receive better returns, you can buy security bonds, corporate bonds, or treasury bills. These bonds and bills offer high interest on your money and are safer than banks and less risky than investing. Real estate can be good but you need a lot of money to invest in the real estate and you might also have to finance your real estate property through a bank loan and getting a loan can be very risky if you are unable to pay it back.
Investment in Rural Property
Bill Gates, the software billionaire, is investing in farmland. Do you know why? If someone like Bill Gates, who not only built Microsoft Corporation but bought a lot of profitable businesses like LinkedIn, Skype, Minecraft, etc. In fact, Microsoft has bought 225 companies and invested in 64, is buying farmland mean there is a lot of money to be made in this niche, right? First of all properties in rural areas cost less than properties in urban areas, secondly, the property prices continue to rise, so your investment in rural properties will be profitable. Thirdly, you can start farming in the rural land and food is one of the best businesses because not only the market is big, but it is also recession-proof. The demand for food will continuously rise, thus, you will be making more money in the coming days. If you want to invest in real estate, investing in rura land is the best option.
How to Build Your Portfolio as an Investor
Portfolio normally refers to things you own. In the field of investment, portfolio refers to all your investments, such as stocks, mutual funds, index funds, ETFs, real estate property, crypto assets, etc. So, how do you build portfolio as an investor? Well, first and foremost you need to diversify your investment. You need to invest in multiple markets and multiple assets. For instance, you can invest in stock market as well as real estate and crypto market. You can invest in a couple of stocks, a couple of real estate properties and a couple of cryptocurrencies. Secondly, you need to continue hold your positions when the market is down.
Who Can Benefits From the Real Estate Market
You can benefit from the real estate market only when you have a lot of money to invest. It costs a lot of money to invest in the real estate market, you need a lot of money even to buy a single housing unit. I do not see a lot of people actually talk about this but the real truth of real estate market is it is only for the rich people, people with small funds cannot benefit from real estate market. While you might hear people saying real estate is the safest investment, there's a hidden truth. It is only the banks who actually benefit from the real estate market.
Is It Really East to Profit From Real
There are many benefits of investing in real estate, you can save money on rent, you can rent your house and generative passive income, or you can sell it for profit. However, before you invest in real estate you need to understand a couple of things. First, it costs a lot of money to buy property, return on investment is lower compared to other markets, you can buy property with a loan but interest tends to be higher than the rent you collect. Therefore, the thing is general people or small investors do not generally profit from real estate market. Actually, real estate market is heavily funded by banks and only the banks make profit, as homes aren't actually built for solving crisis, they are built for banks to make profit.
Who Can Profit from Real Estate
Guess who the big players are in real estate? Yep, the banks! They invest in construction companies, developers, and the housing market itself.
And who rakes in the most cash from real estate? You got it, banks. How? Well, when folks buy homes, they usually can't pay the full price upfront. So, they take out a mortgage from the banks. And that's where banks make big bucks. They earn loads from these home loans.
How to Choose Tenants for Your Property
Get a Security Deposit: Get at least one month rents as a security deposit. This will ensure that you have rents of the tenant defaults. Security deposit also helps you to recover any damages made by the tenant in your property.
Email communication: Always communicate through emails, instead of making phone calls. This will allow you to produce the record in case any dispute arises. Don’t use text or calls if it is not an emergency.
Online payment: Collect rent payments online. However, don’t use the payment service that allows transactions to be disputed. Use non-refundable payment provider.
Charge late fees: One way to discourage tenants to default rents is by charging late fees. However, don’t force late fees
Repairs: Include conditions for repairs on your lease contract. This will help you avoid unnecessary complication later on. Include what repairs are covered in your contract.
Don’t make friends: Your tenants are not your friends. Create a professional relationship.
Making Money as a real estate Broker
I have some friends on Facebook who work as real estate brokers in the United States. It is very surprising to see these people from Asia working as real estate brokers in the United States and in the meantime also succeeding in their career fields. I often talk to them and they share their experience. Based on what they have shared with me I think in order to become a successful broker, the first requirement is your knowledge in the field. You should know the market and have the ability to rightly predict price appreciation and depreciation. If you can predict the market price, you can actually profit a lot. In order to correctly predict the market, you need to understand the market. Understanding the market means you know the demand and supply, you know what most of the sellers are selling, and what most of the buyers are buying. You also need techniques to appropriately value the property, you need property valuation knowledge. You can work independently, however, in order to become successful you need a lot of experience and connection, you can gain experience and connection only when you have previously worked in a reputed real estate agency.
I don't blog on the real estate niche, however, I have been blogging for more than 2 years, and based on my blogging experience here are some tips to promote your real estate blog.
Create a Pinterest page: Pinterest is pinboard-style social bookmarking site. A lot of people use Pinterest to get design inspiration, buy products, or even look for real estate properties. First of all, you need to upload really good images on your blog post, then you will have to pin each of your blog images on Pinterest. People who find your pins will likely visit your blog through the links you share with your pins.
Create a facebook page: Facebook is undoubtedly the best social media platform. Create a facebook page, build following on your Facebook page and then start sharing your blog links. If you have built your page through genuine methods, you are likely to get a lot of visitors.
Share your blog link on the account page and drive traffic.
Also, do SEO so that you can get organic traffic.