Investing in Real estate can be an expensive investment yet exciting at the same time. If you begin to speak to others about it, most of the people have something to say or advice to give you. In that case, we have 5 myths you should know about real estate investing.
- It is best to only invest close at home.
Some people feel that if you want to find success in real estate invest only in a property close to home. Not out of town, out of state or out of the country but close enough for you to always visit from time to time. After all, you know the ins and outs of your hometown, you can easily keep an eye on your property.
While it is true that investing nearby has a lot of advantages, this does not mean that it is a must or a good idea. It might be a good idea if it is your first property and you want to inspect the property yourself but if you plan to expand your portfolio and really invest in real estate you need to consider looking in the wider net and look for a much better opportunity.
- Being a landlord is time consuming and takes a lot of work.
Another misconception is that if you become a landlord you need to put in a lot of time and effort and you’ll have no time to do anything else. Constantly being in touch with your tenant, fixing the door knobs, bathroom, doing maintenance work and rent collection are now part of your weekend plans.
Sure thing, being a landlord can take a lot of time especially if you’re handling a lot of properties but nowadays things are made easy. People can now pay online hassle free and for the maintenance part you can always outsource some people to do the job for you.
- You need to be an Investor with Tons of Money
Having access to unlimited funds helps, it is not a requirement for investing. While some banks require 20% upfront down payment for investment property, there are a lot of options you can choose from for those people who do not have a big amount of money.
- You have to consider the market status and Perfect timing
Some believe that you have to wait for the perfect time with the stock market before you buy a property and invest in something. The issue here is that no one can predict the market. However, you can always do research so that we can have a good idea of what we can expect in the near future, then invest accordingly.
- Real Estate is a Risky Investment
Most people would say that investing in the stock market is a much safer option if you want to have an investment. Afterall, you are not sure if you will have 100% tenants off the time.
Keep in mind that there is no such thing as risk-free investment. Investing is like a gambling, you don’t know if you’ll win or lose. Investment is also volatile, the ups and downs of the market makes it a much bigger risk.