At the Edify Group, we believe that one of the best vehicles for wealth creation is real estate. While we strongly recommend that your portfolio should be diverse; we feel that property investment is one of the must haves. Land is finite. This makes it always in demand. As the population of this world increases, then so will the demand for land. This creates a favourable investment equation that really is economics 101. When demand increases, then the price of that land will rise until it reaches a point where there are enough buyers to meet that demand. Simple. It goes the opposite way of course, if there is too much demand, then price will drop until buyers come back into the market to eat up the excess demand and prices will again level out.
The market is always in flux. There are bubbles, crashes and times where the market is consolidating. Having said that, our focus is not just on buying low and selling high, but in creating a passive income through smart real estate investment.
Investing In Real Estate Tips
We will go over a few things that are red flags before you buy. Some of these will mean that you should walk away and move on to your next option. Other times, a property may look bad, but perhaps all you need to do is clean it up a bit, remove rubbish and trash, perhaps fix a few rooms or modernize it and sell it. Furthermore, we have seen people do just this. They have removed the fridge, updated the kitchen with new plumbing and counters, redone the bathrooms and re-carpeted the bedrooms called the rubbish removal specialists and been able to flip the property for thousands of dollars profit.
This is just one tactic that you can do. There are several methods. As we say, our favourite is to generate passive income that stands the tests of market fluctuations. To do this you need to be educated in what kind of property is being sold at below market value. This is below what the banks value the property and not what the seller or the real estate agent values the property. You have to remember who the real estate agent works for. It is the seller and not the buyer. It is the seller that pays him or her a commision. Not the buyer. Having said this, a good agent is worth their weight in gold as you can partner with them for mutually beneficial gain. Just always remember who pays them.
It takes time to learn these skills and this is where we want to help you. We will have articles on tips and tricks. What to look for and where. Ways to negotiate with not just the seller but also the banks. Banks love to lend money for property and for some reason people think that they cannot negotiate with them. This is false. We will have articles about good debt verses bad debt and much much more. We at the Edify Group look forward to helping you have a more informed journey through the pitfalls in the Australian and New Zealand real estate investment world!