Real Estate Investment Strategies

Here are some real estate investment strategies which can actually help you avoid losses and maximize profits when investing in real estate. For millions of Canadians, investing their life earnings in real estate is a matter of great concern, which needs proper planning and deliberation.

When selling a house always figure out the actual worth

There is no point in putting your house in the market when you do not know its worth. By selling your old house you can actually make enough money to shift somewhere else or buy a new house.

Check your financial reserves

It is important for you to check how much cash you actually have to make an investment in real estate. These investments are not small, so it is imperative that you have enough money in reserves before you go out to make an investment.

Check the local trends

Study the market and make sure that you are fully aware of the local customs. Check for local rates of properties so that you are not overcharged when making an investment. If you plan to buy land, always hire a professional realtor to assess the property under review. Once the realtors approve the property, only then you should make an investment.

Avoid too much real estate exposure

Do not invest in too many real estate projects at the same time. Logically you should not put more than one-third of your assets in real estate. The reason behind is the fact that real estate is not so liquid, meaning that it is expensive and difficult to buy and sell.

Secondly, real estate is not ideal for short-term investments.

Think carefully before buying a second home

It is extremely important that you give it a long thought before actually buying a property. Ask yourself why you need this new property and whether it really worth your time and money. If you already have a home and go on to buy a new one, the maintenance costs and time might be too much of a burden.

According to experts this is a very expensive move and should be carefully considered. On the other hand, if you plan to spend a few months a year in the new house, then instead of buying you will be better off renting one.

Buy when prices are falling

As a buyer you need to watch your timing and it is suggested that you finalise a purchase when prices are falling in the market.