Investing in property is simply another form of investment. Buyers can invest directly by purchasing property individually, or indirectly by investing in a managed fund or timeshare. Although real estate agents may understand the property market, prospective buyers should still seek independent advice, because property investment may not be right for everyone.
What to Know Before You Buy
Don't fall for pressure-selling techniques and high-pressure seminars
Some sales people can be extremely persuasive and persistent. They often use gimmicks like offering you a "once in a lifetime opportunity".
Determine your overall financial plans
Think about what you want to achieve financially and how soon you want to achieve it.
Understand the risks involved
All investments carry risks. Make sure you are comfortable with the risks associated with a particular investment.
Decide whether or not you need professional advice. If you're dealing with a financial advisor make sure they're licensed.
Investing directly or indirectly
You can invest directly or indirectly in many assets, including real estate, through a managed fund. Time- shares are a type of managed investment.
Do your homework
Find out as much as possible about any investment you are making. Make sure you really understand the pros and cons of choosing a particular investment asset. Weigh the advantages and disadvan- tages against your financial goals.
Consult with your accountant
There may be tax issues to consider that you may not be aware of. Once you've decided to take the leap and purchase investment property, be sure to read and keep all documents you receive about your investment. If your asset is being managed by someone else, make sure they keep you updated on all pertinent information. Reputable investment managers will be happy to answer your questions and will expect you to take an interest in your investments.
6 Investment Tips You Can Use!
Hire and pay for skilled workers to do your renovations.
Location. Location. Location. Invest in the best location you can afford.
Be affordable for tenants by buying small and staying small.
Look at a property for what it can be, not for what it is.
Focus on the money coming in and going out - not the cap rate.
Don't go unique - choose rental properties that will appeal to anyone.
One More Thing...
Real Estate Investment Trusts
Real estate investment trusts, known as REITs, are entities that invest in different kinds of real estate or real estate related assets, including shopping centers, office buildings, hotels, and mortgages secured by real estate.
There are basically three types of REITS:
Equity REITS, the most common type of REIT, invest in or own real estate and make money for investors from the rents they collect.
Mortgage REITS lend money to owners and develop- ers or invest in financial instruments secured by mortgages on real estate.
Hybrid REITS are a combination of equity and mort- gage REITS.
The Internal Revenue Code lists the conditions a company must meet to qualify as a REIT. For example, the company must pay 90% of its taxable income to sharehold- ers every year. It must also invest at least 75% of its total assets in real estate and generate 75% or more of its gross income from investments in or mortgages on real property.
Many REITs trade on national exchanges or in the over- -the-counter market. REITs that are publicly traded must file reports with the SEC, such as quarterly and annual filings.
Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
8 Website : Mississauga4Sale.com
- Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
- On-Line Real Estate Newsletter sign up
- See seasonal housing patterns