Advice
4 tips to protect your real estate investment
29/11/2018 20:35 | Source: realestate.au.com
One of the best ways to invest your money and build wealth can be buying property. Many new investors often feel overwhelmed before entering property investment. Here are 4 helpful tips to protect your money poured in property.

4 tips to protect your property investment
(Photo: Kiplinger)

Create a long-term portfolio

Remember to think about the end game when creating your portfolio plan. You need to set a passive retirement income target that you want to gain from your properties. Based on this target, the right property investment strategies to adopt now and over the journey can be found. Think about price points, growth or yield, locations and the number of properties you will need to buy to reach the target.

Identify what you can afford - present and future

Firstly, understanding your surplus cash flow position both now and in the future is very important. You need to know that your current surplus may change as your life changes with different events. Ensure that you know what can afford to hold onto it at present and in future.

There are some big events such as getting married, honeymoons and having children affecting your cash flow. Property investment is a long term journey, therefore, you aren’t able to make money quickly. 

Know how to negotiate in property investment

A smart investor always knows how to get the right property at the right price for his investment. Do your property research and look at numerous properties to get a sense of the market and comparative property values before invest your money.  

Be wise when getting advice 

Normally, new investors find it helpful to seek for advice from experts. However, it is also important to choose the right advice that is suitable for your case. Don’t hesitate to ask the hard questions and be sure to ask for references or testimonials from previous customers.