Amazing benefits like tax benefits, passive income and property appreciation of real estate investment make it the first choice of people looking to keep their money safe for future. And they find this process easy too. But, if you are also the one going for the same, then here are a few things that you must consider, so that you don’t end up with any regret. Although it’s not necessary that everyone suffers, but to be on the safer side have a glace on the discussed factors.
Go for an Investment property instead of home
Some of us forget that we not choosing this property for our living, instead we are looking for a rent or other purpose. So its not necessary that it should be beautiful or should be near to the market or should have a good connectivity.
Always remember that you are considering from an average family point of view. And the other important point is that it should not involve much of renovation or remodeling as these properties should be rented as soon as possible.
Don’t Invest with a partner
Number of people are not able to make that amount of capital sometimes, so they consider buying these properties with another person. And the other reason can be the fear of loss, they think it might be distributed. But, its really a bad decision.
So don’t go for it. Some of the people borrow money from their family members for starting their investment deal and again if you are thinking for the same, don’t go further. Check the down payment, if you can’t afford to pay it after your regular bills, then you are not ready for it.
Don’t Raise the Rent Constantly
A number of landlords think it from an earning point of view and constantly raise the rent. But, here they are wrong, as if you do this tenant would disturb you are maintenance and other fixings regularly and this will create problem for you. Repairing, updating all this would overweigh the higher rent you would get from the same. Keeping the rent same would keep them happy too and they would consider it as incentive too.
Don’t Rent to Family or Friends
We always trust the likeminded people and don’t want to take a chance with other people. Emotions or relations are the basic reason for it, but don’t take it that way, as you have to suffer for it very soon.
A number of times you have to take action or evict a tenant, due to some messy situations. In that case you can’t do it if he or she is related to you in any way. Its easier to take action if you are not emotionally related to that person. So try to avoid these situations.
So increase chances of success in real estate investment with FSJ Real Estate or getting the profit for which you have planned, just keep in mind the above things.