By Patrice SARDA “Real Estate Investment Advisor”
There is quite a fair bit of truth in the old adage that you should don’t put all your eggs into one basket, a few truths that could help you build your net worth and open up the world of passive income.
By choosing to diversify your investments you not only steel yourself against any unforeseen downturn in a particular market but also put yourself in position to potentially capitalize on any booms within an industry.
And by far, the best way to diversify your current investments and financial plans is by buying into real estate. Few other industries have been able to give individuals the opportunity to turn an investment into huge profits and financial security. Though if you have already decided to try your hand at real estate and earn your own fortune, the next decision is, 'Which market would you like to invest in?'
Finding the right market is paramount to your success and if you are like the countless of other business savvy investors, then you have turned your attention towards Thailand, if you haven't then this part applies to you in particular. As real estate in Thailand is currently witnessing an enormous upswing in returns for those in real estate market, buying into the emerging paradise can help you secure your financial future. So if you're ready to make the commitment and begin working your way towards financial security, let's explore the top five tips you'll need to know in order to find success…
Patience is more than simply a virtue; it is an essential business tactic…
The most important aspects of the business that cannot be overlooked is timing.
Often with your first purchase, the desire to turn a quick profit and re-sell too quickly can cause you to lose the true value of your investment. As real estate only increases in value over time, the longer you hold onto a property the more valuable your investment becomes, increases your returns.
And while there is certainly a benefit to buying and reselling properties with a quick turn over rate, "flipping" homes is not the most long lived of business ventures, though adept for producing quick capital and funds, in the long term, nothing quite builds wealth like maintaining property until value is at its highest point, and probably even for some time beyond that.
So practice patience and hold onto your investment until the market is at its highest point…
Do your homework and anticipate potential cash flow before investing
Before you invest in any type of property you should first spend some time crunching the numbers and determine what your particular cash flow might look like, prior to investing. This means looking into all expenses, taxes, fees, maintenance costs, and lender payments, and checking them against what you will earn in a given month using your investment.
Any investment that leaves with some left over amount once all expenses have been deducted is what is considered a positive cash flow investment, one that will continue to build wealth for you with each passing month, those that leave you with less is considered a negative cash flow investment and should be avoided.
Calculated risks is still a risk none the less
Investing in real estate does come with its inherent risks, the possibility for failure is present as some investments can turn on you. Though you can avoid much of the risks, and at the very least mitigate any harm from possible market downturns, by simply doing a bit of calculating and removing any emotion from the transaction.
At times purchasing a property can often become an emotional experience as you can lose yourself in thoughts of living in the place or romanticize the experience leading you to make careless mistakes whereas if you approach the transaction simply as a transaction, using every bit of business acumen that you have, you are less likely to make unnecessary risk.
The old adage of real estate still holds true
After all these years, one thing has remained a constant in real estate, location supersedes all other factors. For as cliché as it is 'location, location, location' is very much the rule when looking at the potential for returns in the long term.
While certain factors can be adjusted, investments can always be improved and developed, the location remains rather locked in unless major redevelopment is slated for a neighborhood. So before you place down any amount on your new investment, do a bit research into the neighborhood, as you are not only being into a building but an entire community.
One that will dictate your potential for profits.
Above all, practice the skill of good timing
This can be a bit difficult to accomplish with your first foray into real estate investments, as there are many critical pieces and aspects at play when considering the right time to purchase a property. You want to be certain that you are paying the least amount you can, without potentially buying into a property that will devalue too low, and for too long, to offer any significant returns.
On the flip side of that, buying a property when it is at its highest price, and incidentally its most wanted period, could set you up for a long hard road to seeing any returns on your investment.
So take the time, to look into the property while determining the potential for either downturns in the market, in which you can capitalize on if you hold out, or upswings, possibly pricing you out if you do not act quickly enough.
Business still Business…
Only thinking about Business and Business only...
If you think your customers are your friends, you're wrong ..!
It is very likely that some may or may become so.
The only worry is that we are in Thailand and most think that because you can buy a t-shirt or take a meal for a few dollars, you can also get everything for free ...
Taking these principles to mind and practice
Real estate can be a difficult industry to break into, though with a bit of business acumen and fair amount of research, you can begin to turn your investments into large stream of income and secure your financial future for yourself and family for years to come. So if you're ready, your future waits.