More and more people are discovering the benefits of real estate investment. Investing in property represents a low-risk investment with good returns in the long run. Not only will you see increases to the value of your property over time (if you invest wisely), but you will also be able to enjoy the passive income of receiving rental payments. Additionally, many investors find they can enjoy significant tax benefits from their investment.
Although investing in real estate can deliver incredible returns in the long term, it also involves a lot of hard work, especially at first. There is a lot of knowledge required in order to successfully navigate the systems, fees, regulations, and laws associated with property investment. In the best case scenario, this will take up a great deal of your time and energy. On the other end of the scale, your lack of professional knowledge could result in you losing out on significant amounts of money or getting into trouble with the authorities.
Seeking professional assistance can help you to avoid and overcome these issues, to let you enjoy the benefits of property investment without the hassles and the risk. This professional assistance can range from mortgage brokers and financial planners to real estate advisors. Here are the top reasons why working with experts will let you invest in property hassle-free.
Save Time on Onerous Research
Property investment involves an incredible amount of data: property values, historical trends, projected growth, average rental yield, occupancy rates… the list goes on. Of course, it is possible to wade through this amount of data yourself, analyze it and determine the best moves to make for your investment. However, this is pretty much a full-time job, which defeats the purpose of trying to set up a passive income stream!
Real estate experts and advisors live and breathe the market, have years of experience in the industry, and are on top of all the latest changes. They will be able to tell you instantly and probably more accurately something that it would take you days or weeks to find out for yourself.
Markets Vary From City to City
Even if you are a seasoned property investor with in-depth knowledge of the market, you are probably only familiar with your own local market. Do you want to be confined to investing in just your own local market? Recent years have shown us that within the US, certain cities can experience incredible growth in property values at the same time as others are faltering, even in nearby cities. For example, Orlando, FL is predicted to be a hot investment in 2019, while real estate markets in other parts of the country and even within Florida are predicted to plateau or even weaken this year.
Make sure you keep your options open to a variety of markets by seeking advice from a property market expert who covers the whole country. They will be able to give you an unbiased view on which markets are trending, which to avoid, and where you should be putting your investment dollars this year.
Explore Different Investment Return Options
When you think about property investment, you probably think of a traditional setup where the property is rented out to tenants on a medium or long-term lease. This can still be a great way to secure a stable, long-term return on your investment and generate passive income. However, in 2019 there are other options available. Most notably, Airbnb has opened up new opportunities to rent properties out to visitors and tourists on a short-term basis. Many investors are finding this an even more lucrative option, being able to secure high rental rates through Airbnb.
Consulting with a financial adviser or real estate agent who specializes in this area will give you a good idea of your options, so you can decide how you want to use your investment property. This is important to do early on in the process because the kind of property you buy will depend on whether you are looking for long-term tenants or renting it through Airbnb. Although some properties may be suitable to either, generally successful Airbnb properties will have different elements and requirements—such as a location close to areas frequented by tourists and facilities or amenities more suited to tourists.
While you can use tools like an Airbnb calculator to determine the potential Airbnb rental income of a specific property, it doesn’t hurt to verify the information with an expert.
They’re On Your Side
When you hire professionals to assist you with your real estate investments, they will be working for you and therefore will have your interests at heart. For example, when buying a property you generally deal with an agent who is selling the property on behalf of the owner. This person is officially called the “seller’s agent” because they work for the seller, and it is their job to get the best outcome for them. You can also contract your own “buyer’s agent” who works for you – and will fight to get the best deal for you, as the buyer.
Equally, be hiring other experts in the field, whether they are financial planners, mortgage brokers or investment advisors, their job is to work for you and find the best outcome for your situation. This means that they will give you well-rounded, unbiased advice, as opposed to financial institutions, developers and agents who are pushing their own agenda.
They Know the Local Rules in Foreign Markets
Real estate price trends overseas in recent years show great opportunities for investors in overseas markets. Certain countries, such as the UAE, Panama, Mexico, and Brazil offer potential for returns that you will be challenged to find in the USA, thanks to strong economic growth, booming tourism and in some cases a favorable currency exchange.
If investing overseas, it is essential to know the local laws, rules, and regulations which apply. Very few investors have this level of knowledge when it comes to a foreign market, and it would take years to build this up to a level necessary to ensure you do not contravene any local rules, and/or end up paying money you don’t have to on unnecessary costs. Consulting with a local expert is essential to let you navigate the local property market without any issues, and make sure you get the most out of your investment.
This article has been contributed by Remya Menon from Bayut.