5 Common Myths About Investing In Real Estate
Investing in real estate is a huge step towards financial independence. Although, there are several common myths about investing in real estate. People usually rationalize their emotional decisions with the help of many myths about real estate investing.
A Huge Amount of Capital is Necessary To Start Investing in Real Estate
People assume that a substantial amount of capital is required to invest in a property. In truth, investors don’t need a substantial amount of wealth or a 20% down payment to get started. Although it helps to have money for a sizable deposit, it’s certainly not a requirement. Money, no doubt, can get you places. But sometimes, money is not the only thing that you’ll need for your real estate venture.
It’s All About Perfect Timing
When it comes to real estate investment, research, analysis, and strategy beats timing every time. Markets are ultimately unpredictable. Investors should make informed and well-researched decisions, but waiting for the perfect moment to invest is a waste of time. The truth is there is no such perfect time for investing in real estate.
Investors Should Only Invest in City Properties
Investing in properties in the city can be very competitive, seeing that you wouldn’t be the only one trying to invest in urban properties. Plus, with urban properties skyrocketing in value, many first-time investors might find themselves priced out of the urban real estate market.
Renovating A Fixer-Upper Is Easy Money
Fixer-uppers will need to be inspected in order for you to turn around and sell them to home buyers. If you simply buy a fixer-upper for the sake of selling it at a higher price to other people, then you’ll be disappointed at your investment, because you didn’t have a sufficient plan for it. That means seeing what the fixer-upper needs in order to be deemed “buyable.” So, skipping out on a professional home inspection is never something you should do. Home inspectors are there to ensure a safe home by looking at many things in the home – from electrical, to heating, to foundational parts of the home, etc. Essentially, home inspectors are your ally, when it comes to fixer-uppers.
Become A Home Owner First Before Investing In Rental Properties
Owning a home is not a prerequisite to investing in a rental property. In fact, many millennials are choosing to invest in a rental property while renting themselves or living with their parents in order to finance their own dream home someday. Investing in a rental property can be an excellent source of income for anyone, not just exclusively homeowners.