Investment Property: Where to Begin and What Type of Investor Are You?
Real estate is one of the oldest asset classes which still remains one of the most popular these days. Due to the real estate market being quite lucrative, it’s no longer surprising why a lot of millennials are starting to invest in the industry. If you’re one of them, then you have to know where you should start. Fortunately, we’re here to help.
Is Real Estate Investment for You?
Before you begin, you have to keep in mind that real estate investment is not for everyone. This goes to say that some people are suited for it while others are much better off with other investment opportunities. If you want a more hands-off approach, you can take advantage of crowdfunded real estate opportunities.
If you want to know if pursuing real estate investment is a good idea for you, then you might want to ask yourself these questions:
- Do you have the right skills?
Investing in real estate requires constant market monitoring and careful calculations. It also involves handling a property’s maintenance or coordinating with other providers – both of which can be quite time-consuming. Before you begin, you have to make sure that you have the organizational skills, market knowledge, and motivation to pull it off.
- Is your current market favorable?
Even if you have the qualities mentioned above, it won’t do much if you’re in a declining market. However, even if the current market isn’t that favorable, you can still look for investment opportunities that are outside of your area.
You can also buy properties in more favorable areas or projects like Port de la mer or be part of known Dubai real estate agencies. Once you land in a favorable market, you’ll be able to invest in lucrative opportunities like the Citywalk apartments, off plan property in Dubai and the likes.
- Do you know what type of investor you are?
To gain an understanding of the real estate market, you have to gain an understanding of the type of investor you are. Basically, there are 6 different types which are as follows:
- Emotional – these investors often follow their gut and tend to invest in trendy properties.
- Cautious – the opposite of emotional investors, cautious investors are quite conservative and tend to avoid investing in high-risk investments.
- Informed – this refers to investors who do research on the market trends and seek advice from professionals then apply that advice if it makes sense.
- Technical – a technical investor tends to be obsessed with the movements and fluctuations in the market.
- Casual – casuals tend to be cautious with their initial investments, but once done, they tend to leave things as they are.
- Busy – this type tends to do everything in a rush, often buying and selling real estate whenever necessary.
There’s more to real estate investment than the ones mentioned. However, as a beginner, you’d want to keep these questions in mind so you will be able to determine if real estate investing is for you or not.