When you buy a real estate, what you are invariably doing is that you are removing perfectly liquid cash your cash reserves, savings, funds, bonds, etc and putting it in a highly illiquid asset. While your cash was sitting idly at home or locked up in a saving or a fund, it was adding on a decent 4 to 6% of returns on it. But you will realize that when you acquire real estate you almost shut down all such avenues. What is now left to you is try to get hold of a tenant who will try to give you back a return as good as or even higher than what you were earning before you bought this one.
The balancing act is very crucial:
Real estate investing undoubtedly is fraught with risks. Sometimes, the risk is so high that it makes sense to buy a boring and nice house that will interest a lot of people and thus manage to get a good return on the acquired property.
The money and the time spent on maintenance”
Time is money and any time overspent in maintaining the property is also to be considered. You can maximize the value of the property by minimizing the amount of time spent on upkeep of the property. For this, you will need to deliberate in detail and also make a smart upfront choice.
Here is a list of things that you can do if you want to increase the value of your investment in the real estate
- Make sure that the paperwork and formalities have happened in the right office and also make a note of the date and time that the legal to do has happened and the remarks that are left in the registrar’s register;
- The title most preferably must be bought in your own name. remember that you love all your children, grandchildren et al. but the title of the property is best in your name;
- Exercising due diligence is of paramount importance. In purchasing the house you may have seen a lot of other property. It is only right that you analyze and compare the properties against each other under various headings to understand which one is the right call for you!
- Test – review, and report. Do not get carried away by the beauty of the house and the locale but think practically.
Only when you have deliberated over the above points and think that you are going to enjoy your stint as a landlord, go for a week.