• Mon. Nov 28th, 2022

Tips for getting started and growing your real estate investments

ByWillie M. Evans

Sep 21, 2022

Investing in real estate doesn’t have to be one of the most expensive purchases you will ever make. But the good thing is that you don’t need millions to own a property. Here are some practices to grow your real estate portfolio.

Even if you don’t know where to invest, start by having some savings with the ultimate goal of becoming a homeowner. You can open a savings account and set aside as little as Shs 50,000. With consistency and discipline, you will accumulate a certain amount with which you can start investing.

You can choose to open a Sacco and deposit your savings every month. At the end of the year, you receive savings and stock dividends. One of the main advantages of a Sacco is that you can borrow up to three or four times what you have saved. It’s an easy way to invest in real estate effortlessly.

Focus on the potential of an area

Over time, land increases in value. As an investor, you can focus on an area with growth potential because prices are affordable compared to an area that has developments.

After identifying the area you want to invest in, look for property developers who are selling property there. You can visit their offices, attend real estate site visits. Additionally, you can perform a title search to find out who owns the property. As a beginner in real estate investment, it is advisable to invest with a real estate company, as they will help you with all the due diligence, documentation and subdivision of the land.

Know all the costs involved

It is important to identify all costs involved during and after the buying process. This will help you prepare the necessary finances for your investment and avoid impromptu financing. Sometimes there may be hidden costs in the field that may affect you. When you know all the costs involved, you will decide if your savings will be sufficient and you will need to take out a loan.

There are key steps you should follow when purchasing any real estate product. As a beginner, avoid taking shortcuts and making assumptions about certain critical information that can impact your investment. Make sure you get all the information and sign all the land purchase documents.

Make sure you are familiar with all the documents related to the property. Make sure you get all payment receipts and sign all documents and keep a copy for your records now and in the future.

In the long term, it is effective with a real property company, a notary, an appraiser and a surveyor. As professionals, they are able to protect you and your interests when investing. Unfortunately, people try to run away from professionals and end up losing a lot more.

Think and invest for the long term

Real estate is a long term asset and it is advisable to think long term when considering this type of investment. For example, if you invest in land in a fast-growing area, in five years it will be worth much more. This is because the earth appreciates over a period of time.

Be realistic in your investment expectations

As with any investment, real estate investing may not pay off immediately. Therefore, don’t expect excessive returns in the short term, rather be realistic with the returns. Investing in real estate as a beginner doesn’t have to be awkward, talk to experienced real estate companies for tips and advice.

Identify the type of real estate investment in which you wish to invest

Real estate investing comes in two main categories; residential and commercial. In addition, it is subdivided into leasehold and full ownership. Identify the type of property you want to invest in and for what purpose.

Residential property – it is exclusively used for the privacy of a family or an individual

Commercial property – it is for the purpose of commercial activities.

Leasehold ownership – where you only hold the land for a certain period subject to frequent payments. The longest tenure of the property is 99 years

Freehold ownership – where you have absolute ownership of the property and the land it sits on. This property does not need to be renewed.

Real estate investing comes in two main categories; residential and commercial. In addition, it is subdivided into leasehold and full ownership. Identify the type of property you want to invest in and for what purpose.

Residential property – it is exclusively used for the privacy of a family or an individual

Commercial property – it is for the purpose of commercial activities.

Leasehold ownership – where you only hold the land for a certain period subject to frequent payments. The longest tenure of the property is 99 years

Freehold ownership – where you have absolute ownership of the property and the land it sits on. This property does not need to be renewed.