Real estate investing can be tempting for many reasons, but we often see an uptick in interest around the summer months. Families go on vacations, have a wonderful time, and think it might be nice to have a second home where they can relax and make memories for years to come, while making money off renting the property in the mean time.
As with any financial decision, investing in real estate requires a lot of thought and planning. We’ve pulled together five of the most important things you should consider before you buy any time of investment property, be it residential or commercial.
We talk about the importance of timing and location, and review some of the larger economic factors that are outside of your control but will nevertheless affect your real estate experience.
You should also consider whether you’re passionate enough about maintaining property to dedicate significant time and money to the endeavor. Real estate is no small undertaking, but can be fulfilling if you enjoy the process.
- 2013 Annual Report from the Federal Reserve
- Timing the Real Estate Market : How to Buy Low and Sell High in Real Estate by Craig Hall
- Capitalization Rate – Investopedia
- National Apartment Association Annual Survey [Displays Average Maintenence Rates]
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- Connect with Chad [firstname.lastname@example.org]
- Connect with Mike [email@example.com]
- Photo Credit: Blake Wheeler
What You’ll Learn in This Episode
- Why real estate investing can get emotional.
- The importance of timing your real estate purchase.
- What to consider in terms of location when you’re purchasing a property.
- Five types of properties and some of the associated costs and risks of each.
- How much of the gross revenue of a rental property you’ll have to spend on upkeep.
- How to evaluate whether real estate investing is worth the time and effort to you.