Real Estate Investing Advice

Real Estate Investing Advice #6: This is a long-term investment.

(All types of Real estate investment) Although you might experience some capital gains taxes in the short term, it becomes more and more of a better deal the longer you hold onto the property.

Real Estate Investing Advice #7: Status of owner/owners.

(Real estate investment Types 1 & 2) Before you sign a contract, consider what name the property should be purchased in. If you're a couple with different incomes, for instance, consider which name/income will provide the greatest tax advantage. It's a good idea to seek advice on this point from your Tax Advisor.

Real Estate Investing Advice #8: Loan selection.

(Real estate investment Types 1 & 2) Unless you are an experienced mortgage rate hound, consider a fixed interest loan when borrowing as it won't let interest rate uncertainty get out of hand. Whether you take and Interest-only loan or one with principal and interest repayments will depend on your own circumstances. For more information on this subject, see our Mortgage info page, available in the menu to the top left.

Real Estate Investing Advice #9: Property selection.

(Real estate investment Types 1 & 2) When selecting a property to purchase, don't judge it on superficial criteria such as whether or not you live in it, but instead consider whether it will suit the needs and desires of the local market. For example, if the area you're looking in is dominated by families with young children, you shouldn't buy a one bedroom apartment as an investment in that area.

Real Estate Investing Advice #10: Property management.

(All types of Real estate investment) A professional property manager can take care of your property and/or tenant(s) on a day to day basis. Their experience is invaluable in locating tenants, checking credentials, recommending the appropriate rent, supervising repairs, collecting rent and generally managing the property. As your Real Estate Investments grow, try to enlist some property management before such a time that your work overwhelms you, but not too long before as they aren't likely to come cheap.

Real Estate Investing Advice #11: Good service and competitive rates.

(Real estate investment Types 2 & 3) It makes more sense to have long term tenants who will look after the property than to try to get an extra $5 or $10 per week out of your tenant. Also, if you do prefer to keep them, make sure you respond to repairs or emergencies quickly.

That wraps it up for our page on Real Estate Investing Advice; we sincerely hope you found it beneficial. Again, if you have any questions or concerns that we did not address here, or you have a correction to point out, or some advice to add to this pile, please feel free to write us.