No investment is guaranteed. But if you want to play it safe without too much of a learning curve, then Property Investing is your best bet. It’s a tried and true method of accumulating wealth over the long term.
But you’re no realtor and you know absolutely nothing about Real Estate Investment. Where do you start? How will your return on your property investment play out?
Rental Income and Capital Gains
There are two direct avenues of income possible from Property Investment; Rental Income and Capital Growth from the sale of the property.
Rental Income is on-going and offers tax advantages also, such as interest loan deductions and maintenance costs.
Property values fluctuate but generally increase over a ten year period. So, when considering property investment as a viable investment alternative, you must take the long view and not expect to reap financial windfalls within a short period of time.
Deciding on Type of Property to Invest In
Once you’ve decided to pursue property investment, you must determine which type of property you will purchase. You may want to invest in a fixer upper, maybe a single-family home or a multi-unit structure. You might have your heart set on building. There are advantages and risks to all of the above choices. Some are obvious; others need more careful scrutiny. Buying property at a low price that requires renovations and repairs can be profitable in the long term, but does require additional revenue for repairs. Rental income will also be delayed until the property is ready for occupants.
Single home rentals versus multiple units are not as profitable unless your property rents for a huge sum, with your loan interest and maintenance costs low to average.
You may ask which will yield the most Rental Income in the short term and the greatest Capital Gains in the long term. You may also wonder if residential or commercial property more profitable.
These answers depend on location of the property, the market value and the interest rates at time of purchase. Well, we’re back to ground zero, aren’t we? How do you know where to invest? How do you know whom to trust with your investment?
Solutions for the Novice Property Investor
We at Custodian Investors have been answering those questions to novice property investors since 1997. We are managing developers and experts in the field of Real Estate, Property Investment, Development, Finance and Taxes. We take your hand to guide you through each step in the process of wealth creation through our Property Investment Seminars.
Our focus is on asset appreciation and compounding growth through multiple Property Investments. Our program has created millionaires. Contact us today, to let us show you how to get started on your journey to financial freedom with Property Investment.