Beginner’s Guide to Property InvestmentHow to Make a Profit from Distressed Property

So you wish to get into property investment but don’t know where to start? Don’t worry, our comprehensive article on property investment will guide you through the entire process. All you need is a little preparation and expert advice and you can step into the property investment with confidence. And what better place to seek inside knowledge on all things property and investment than DG Institute? Read one DG Institute Review and you will know for yourself.

Why should you invest in property?

Chances are, if you’ve already decided to foray into property investment, you have a clear idea why you want to get into it. However, let’s look over why you should consider investing in property at all. People make investments in order to create wealth for themselves. There are many investment avenues available. One can choose to invest in stocks, bonds, and even cash but property investments are safer and more convenient in comparison. 

Advantages and Disadvantages

Like everything else, property investment has its share of pros and cons too. Let’s review these below –

Pros –

  • Growth in Capital – The value of the property you buy will grow over time providing you with a significant profit and steady source of income.
  • Safe investment Option – Investors do not control the real-estate investment market and so your investment is safe from turbulent market upheavals. Moreover, it doesn’t matter what condition you purchase a property in, its value will grow despite it.
  • Risk mitigation opportunities – You can insure your property against foreseeable damages like fire/damage/evacuation and so on.
  • No prior expertise required – You need to possess a certain amount of experience in order to invest in the stock market profitably. It is not the same with the real-estate investment market. Absolutely any layman can enter into real-estate investing as long as they have some knowledge about the prevailing market conditions.
  • Absolute control – Real-estate investments allow you full control over the operations involved along with the returns gained.
  • Possible tax benefits – Property investments can incline you towards receiving certain tax benefits.

Cons –

  • Lack of liquidity – Sure, you can sell off your property, but the process is far more laborious than say, selling off stocks.
  • Hidden and continued costs – Investments such as shares do not incur ongoing costs. A property investment, however, will require initial setting-up fees such as a deposit, legal/conveyance fee. Additionally, you will have to continue to pay for maintenance and upkeep of the property plus insurance and taxes.
  • Vacancy charges – You have to factor in that your property is not going to have a tenant at all times. You will need to figure out how to handle mortgage repayments during these times of vacancy.
  • Problematic tenants – God forbid, if you land up with difficult tenants. Bad tenants are every property owner’s nightmare. They can damage your property, refuse to pay rent and even refuse to leave. Property disputes between tenant-landlords can sometimes extend over months leading to a lot of stress for both the parties involved.
  • Additional costs – Yes, property investments can gear you towards tax benefits. Yet, you’ll still have to account for repayment costs when the property lies vacant and budget for the interim gap between repayments and rental income.

How to find the right property to invest in?

Make your mind up about what you expect to gain from your property investment. Do you want a future place of residence for yourself or simply a source of capital gain? If it’s the latter, you do not need to look for a property that will satisfy your emotional needs. You can afford to be more objective about it. If the goal is to rake in an income from your property investment, circle down on a property which exhibits high rental demand. You can go for a photo-ready property or one that needs slight repairs. Don’t let repair costs deter you from taking on a property you like. You can recover these costs later as the value of the property grows. Look for properties that stand out from the average properties available in the market. Location is important. Try to invest in a property that is conveniently located near shops, schools and public transport facilities. Consult a mortgage broker before you jump into your property investment. He/she will be best able to advise you on the correct timing for making a property investment depending on market conditions.

How DG Institute can help – Dominique Grubisa has conducted real-estate transactions worth over $50 million over a span of 20 years. Her knowledge and expertise shared via DG Institute have helped her students claim properties for prices much lower than the prevailing market value. DG institute organizes property investor summits and other events to teach prospective property investors how they can create wealth and generate an income from property investment.

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