Real Estate Investing--How to Create Wealth & Passive Income With Rental Income by Armani Murphy

Author:Armani Murphy [Murphy, Armani]
Language: eng
Format: epub
Publisher: Important Publishing

Top Tips To Get You Started

Real estate investing can be a lot of fun. It’s exciting although hard work. But, there are also several common pitfalls that can cause you issues or even cost you your investment, it’s important to be aware of these in order to prepare for them properly.

Commitment

The prospect of finding finance, locating the right property, and of getting all your sums right can seem pretty daunting. But, it is possible.

What you need is commitment.

We’re talking about a belief in yourself that you can become a real estate investor. Visualizing your goal will actually help you to achieve it. This isn’t just a premise, research shows that visualization is key to success.

Picture yourself being handed the keys to your property investment and commit to achieving that goal, it is possible.

Competition

One of the most important things for any real estate investor is to check out the potential competition.

For example, if you’re thinking of purchasing a small apartment in a block but someone else has 10 apartments to rent out, what will attract the customer to your apartment? There’s a good chance your competitor will be able to offer a slightly lower rent thanks to bulk purchasing.

That could mean your investment never makes any money.

Of course, if there is an abundance of people looking for places to rent in that area, then you don’t have an issue.

But, to be sure, you need to assess the level and strength of your competition. This will help you to choose the right market and real estate investment property.

Location

That leads us nicely to the location of your investment property. You probably already know the less-desirable areas in your town/city. Some of these may still be worth investing in if the area is improving and property prices are rising. This is especially true if you’re thinking about flipping.

The really important factors in real estate investing are the facilities near your property.

For example, if you’re purchasing a family home you’ll want it to be near good schools, shops, and some facilities for the family. It doesn’t need to be in the center of the city and a garden is a definite plus.

But, if you’re looking to offer student accommodation it doesn’t need a garden and does need to be near the university, as well as an array of eating and drinking establishments.

In short, think about who will be renting your property and make sure you purchase something that gives them everything they need. That will make it much easier to rent the property and maintain an income from your investment.

Tax

One thing that many investment property owners overlook is tax. The rules are constantly changing regarding what you can claim as expenditure and whether mortgage interest counts as an expense.

You need to check the rules in your state to ensure that you don’t just know what you’ll be liable for, but that you keep enough funds aside to cover the cost of your tax bill. Don’t forget that rental income needs to be included with your primary income when completing your tax return.

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