5 HOT TIPS FOR SUCCESSFUL REAL ESTATE INVESTMENT

5 HOT TIPS FOR SUCCESSFUL REAL ESTATE INVESTMENT
BY: RHIANNON WILLIAMSON
the last downturn of the global stock market saw
millions of `every day' investors having their
FINGERS BADLY BURNED. OVERNIGHT LIFE SAVINGS
were eaten away, retirement funds went into
decline and the economic forecast for all of us
WHO HAD ANY MONEY INVESTED IN STOCKS AND SHARES
was gloomy to say the very least.

AS A DIRECT RESULT INVESTORS IN THEIR THOUSANDS
turned their backs on the rollercoaster stock
markets and sought alternative asset classes in
WHICH TO INVEST THEIR HARD EARNED MONEY. THIS
has led to a global boom in real estate markets
and property prices, and it has spawned a
GENERATION OF BUDDING REAL ESTATE INVESTORS.

for those of you wondering whether it's too late
TO VENTURE INTO REAL ESTATE INVESTING OR
considering how best to make the most
significant returns from property investment,
HERE ARE 5 HOT TIPS FOR SUCCESSFUL REAL ESTATE
investment to set you on the path to potential
profits!

1) consider investment property abroad

THERE ARE MANY RELATIVELY UNTAPPED PROPERTY
markets in countries around the world that offer
the real estate investor greater return on
INVESTMENT IN THE FORM OF RENTAL YIELDS OR SHORT
to medium term capital growth.

WHILE MAJOR MARKETS IN THE USA, UK, AUSTRALIA
and europe are slowing down, there are emerging
property markets globally that are hungry for
INVESTMENT AND ARE PROVING TO BE HIGHLY
profitable.

FOR EXAMPLE, IN 2007 A NUMBER OF COUNTRIES ARE
already aligned for accession into the european
union and as a result property markets in these
COUNTRIES ARE LIKELY TO BENEFIT FROM GREATER
numbers of visitors, more trade, increased
investment into infrastructure and more stable
ECONOMIES. THE LIKES OF HUNGARY, SLOVAKIA,
bulgaria, croatia, turkey and even northern
cyprus are just a few examples of overseas
DESTINATIONS WITH EMERGING REAL ESTATE MARKETS
that may be worthy of your consideration.

2) MAKE SURE YOUR PLANS ARE PROFITABLE

this sounds ridiculously simple right? well,
YOU'D BE SURPRISED HOW FEW PEOPLE ACTUALLY MAKE
sure their plans are actually sustainable and as
profitable as they hope.

examine any real estate market that you're about
to enter by firstly comparing property values
ACROSS THE CITY, STATE OR REGION AND MAKING SURE
you know what your money will buy you. then
ensure that the rental yield you intend to
OBTAIN FROM YOUR PROPERTY IS ACTUALLY REALISTIC
or that the asking price you intend to set once
you've renovated the property will be offered.

3) never assume anything

THIS GOES FROM ASSUMING A HOUSE IS STRUCTURALLY
sound to accepting that tax laws won't change -
from believing your tenants when they tell you
THAT THEY ARE HOUSE PROUD AND HONEST TO
accepting the first builder's quotation!

DO YOUR DUE DILIGENCE ON EVERY SINGLE ASPECT OF
the process from ensuring the asking price for a
property is fair to checking your tax returns
BEFORE YOUR ACCOUNTANT SUBMITS THEM FOR YOU.
this is your investment, your future, your
potential profit and therefore it is ultimately
YOUR RESPONSIBILITY.

4) employ an expert when in doubt

few people are a master of all trades therefore
be prepared to acknowledge areas where you are
FAR FROM BEING AN EXPERT AND AT LEAST CONSIDER
courting a second opinion. again, this goes from
checking out the structural soundness of a
PROPERTY TO UNDERSTANDING THE LEGAL
ramifications of letting out your property. if
in doubt always double check - and if this means
YOU HAVE TO CALL IN AN EXPERT, MAKE SURE YOU
call in an expert!

5) SET A REALISTIC BUDGET AND STICK TO IT

whether you're purchasing property to let out or
BUYING REAL ESTATE TO RENOVATE YOU NEED TO SIT
down and add up every single area of projected
expenditure to enable you to set a realistic
BUDGET WITH WHICH TO WORK.

make sure you add in everything from having
SEARCHES AND SURVEYS CONDUCTED, LEGAL FEES,
accountancy fees, insurance costs, likely
interest payments on any finance required,
TAXATION, CONNECTION OF UTILITIES, MARKETING FOR
tenants or buyers, real estate agency fees, and
of course don't forget to add on the cost of the
PROPERTY AND THE PRICE OF ANY RENOVATION AND
refurnishing and decorating work required.

SPEND TIME CONSIDERING EVERY SINGLE AREA WHERE A
cost will be incurred and detail every likely
payment that will have to be made and you will
ARM YOURSELF WITH A BULLET PROOF BUDGET AND DO
all you can to ensure you encounter no nasty
surprises along the way.

about the author:
rhiannon williamson is an offshore investment,
OVERSEAS LIVING AND INTERNATIONAL PROPERTY
expert and publisher of
http://www.shelteroffshore.com/

for investment property abroad news and property
buying guides [2] visit www.shelteroffshore.com
[3]

CIRCULATED BY ARTICLE EMPORIUM [4]
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