adminHowever, statistics show that 90 percent of people give up on their resolutions by January 31. This article is targeted at those in the remaining 10 percent that have decided to incorporate investment in real estate as part of their resolutions for this glorious year 2012. I intend to list some aspects that will ensure success in one’s quest of property investment.
It is important to be clear with oneself as to what mode of real estate one wants to invest in. This is very important because whatever answer one comes out with, it will determine one’s level of success come year end.
Clarity is required as to whether one intends to invest long or short term.
If for instance one intends to be a first time buyer but is limited on funding, it is then imperative to focus on the type of property within the budget that has a potential to increase in value over the period that one assigns to stay at the property.
If it is a short-term property investment for the intention to spin, then a focus on areas in demand is a good start. If it is a long-term investment, then thinking along the lines of rental return over time is the best method.
A quick study of the possible obstacles one is likely to face in such investments is always prudent. This helps to give fore knowledge on aspects that normally derail many from achieving their resolutions. For instance, mortgage transactions are not really as quick as the beneficiaries (seller and buyer) hope. Identifying the best property for a quick profitable flip is not always as easy as flipping it. In some instances flipping it is always as quick as anticipated. If it’s rental investment, even well vetted tenants do sometimes face hardships and rentals are not always as timely as hoped for.
This obviously becomes less of a burden if one partner with an expert early on in the year that will assist achieve their goals and objectives. One of the major causes to a break of resolutions especially those with financial ties is an inability to make strategic partnerships with those that do what you “want” to achieve for a living.
One might want to achieve significant residual income from an investment, another comfortable home. Whatever one’s objectives may be, creating a strategic partnership always guarantees benefit.
After identifying the strategic partner, it is critical to create timelines and goals so that the year will not just surprisingly end without any action taken. Although patience pays in real estate transactions, sometimes one has to grab the bull by the horns and make bold decisions to buy or sell.
However, every situation is different and the investor and their investment partner or advisor taking into cognisance prevailing market trends should calculate risk and profit.
I wish you a successful property year.
l Vengai Madzima is a property consultant and analyst with Wisdom Properties. He can be contacted on 0772 468093 email: [email protected]
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