If you are serious about investing in properties, then you have chosen right. However, investing your money in properties without doing proper research about your local conditions relating to real estates and other regions can be dangerous. Although real estate returns are good yet properties take time to appreciate. If you do not follow certain disciplines while investing in properties then you may fail horribly.
If you are thinking that you have limited money or finance to purchase only four plots only then just purchase only three at the most. You must not rush for property investment needs enormous patience. It also means that prices do not spike up within weeks as is the case with equity markets.
Pros and Cons of Taking Leverage
If you are a small investor and wish to acquire only single plot with or without house, then you may take leverage of your existing home. You must have fairly good payback capacity as the new purchase may initially need only 20 to 25% as down payment. The rest could be paid over a period of time in installments along with interest.
When you invest in property think slightly long term as this would ensure you excellent returns. If on the other hand you have already invested in more than three and wish to purchase one or more then you must make sure that you have done your research properly. It is no secret that most real estate investment would need some kind of repairs and maintenance work. Hence, you will need continuous flow of money to do these repairs.
If you have several properties, then it is better to go and consult with professional property managers and real estate agents while seeking out best price in the market.
Giving Out as Rentals
You may also try to give out your properties as rentals if you think that waiting for four to five years would fetch you more. In such cases, you may give them out for rent yet it must be borne in mind that you have to bear with maintenance and repairs.
Sometimes, there are buyers too that are investors and wish to receive continuous return on investment. You may get slightly better price if you sell your properties to these buyers along with tenants. Again, if you investing in small plain plots without any structure on it then make sure that it is connected with road. Mostly such plots fetch higher price as building new homes is everyone’s dream.