It has long been proven that one of the best ways to get on the wealth ladder is to dip your toes into real estate investing. As with any venture, it can get nerve-wracking and intimidating. What if I don’t get it right? What if my investment simply goes down the drain?
If you have these questions in your mind, know that it’s natural and understandable, especially if you’re new to the whole investing idea. If you don’t start now though, are you ever going to give it a try?
The key to increasing your chances for success is to start as soon as possible and start small. No matter how small your start is, you should have a solid plan to move up. Of course, you need to patient right from the beginning.
Here’s an example of starting small and slowly but surely climbing up the property ladder:
2005 – Bought a condominium at $150,000
2007 – Sold the furnished condominium for $180,000
2009 – Bought a townhouse at $300,000
2011 – Sold the townhouse for $450,000
As you become more experienced, you can decide on the properties you want to buy and whether you want to purchase any for personal use. You can also choose to buy multiple investment properties (given you still have somewhere to live).
If you’re fortunate enough to have enough money to invest and some extra to improve the property, it will be in your best interest to invest in real estate. Better that than spending your money on things that won’t give you value in a few years’ time, right?
Buying Your First Investment Property
Here’s the thing: you can’t just decide to buy the first property that matches your budget. Your first purchase is a crucial one, especially if you’re putting most of your money on it. Properties in Surrey, BC aren’t cheap. Although this means it can be challenging to start in the real estate market, it’s a good sign because once you make that purchase, your property value is sure to increase in a year or so. However, finding the perfect property can also be a challenge because you might find it hard to find a good property at a low price.
Don’t fret, though. Here are some tips that can help you finally get started on your way to real estate success:
Build your credit. If you have a good credit standing, chances are you will be offered lower financing costs. This will make it easier for you to make that first purchase.
Don’t overthink down payment. Sure, bigger down payment means lower financing and amortization costs. However, if you have to wait years to build up your savings, the property you’re looking to buy now might no longer be available or will have already increased in value.
Buy small. The most important thing is to just begin your investment journey. Go out and look for a property that meets your minimum requirements in terms of value, location, and type. Once you’ve bought that property, you can already decide about other things such as improvement and renovation. In the beginning, though, focus on buying!
Manage your career. Remember – you’re a new investor. Being able to buy your first property isn’t a guarantee of your new title as a real estate mogul. Don’t quit your job or close down your current business too quickly. Keep on working and building your career. Your primary income will help support your new real estate business and keep it afloat.
Get professional help. Real estate investing is not for the faint of heart. It’s best if you consult a licensed real estate professional who can guide you in the ins and outs of this venture to make sure that you’re making the right decisions.
If you’re looking to buy real estate in Surrey, get in touch with us today! We’re happy to help find the right property for you.