T
totallyproperty
Administrator
Staff member
We see many new investors appearing on our forum and while the vast majority do their research and tread carefully, some new investors seem to think that following the crowd is the way forward. We have therefore put together a tongue in cheek questionnaire to see if real estate investment is really for you.
Do you think real estate investment is easy?
If you read the headlines in the newspaper you may be forgiven for thinking that investment in real estate is simple. Invest your money, sit back and wait for the big bucks to rolling. If you think real estate investment is easy with no risk then you need to think again.
What is your investment philosophy?
Are you looking short-term, long-term, or perhaps you have a medium-term goal? While it is always nice to bank short-term profits in any investment, this is very difficult with real estate because of the nature of the business. If you're looking for a short-term bonus then perhaps real estate investment is not for you.
Borrow money, repay and bank a profit, easy?
It is perhaps the expansion of the Internet, the availability of information and the ability to exchange views which has given rise to a dangerous assumption. Towards the more "colourful" end of the real estate market some "experts" are enticing new investors with the promise that they can borrow all of the money to buy a property and not risk their own capital. Do you believe this? Well, where there is no risk there is no chance of rewards - enough said?
Will every worldwide property market eventually come into favour?
There is an old adage in the investment industry, buy low and sell high, which seems to have been adopted by some of the more adventurous real estate investors. When you bear in mind the worldwide population continues to grow, demand for property will increase for ever and a day then perhaps you might be mistaken for thinking that every worldwide property market will eventually come into favour.
No! Many bombed out property markets have remained in the doldrums for decades, falling further and further behind the more in demand real estate sectors.
Do you expect to build a property portfolio in the short term?
The buy to let industry in countries such as the UK has no doubt created multimillionaires across the board with significant wealth and significant income. In some ways this has given the wrong impression to new investors to the real estate industry because it takes time to build up a property portfolio, you need to learn from your mistakes in the early days and property wealth does not happen overnight. If you expect a shortcut to the top league of the property sector then you will be very disappointed and you could be one of the more gullible investors who could actually lose everything.
Conclusion
While this is something of a tongue in cheek questionnaire for would-be real estate investors it does highlight the fact that there is no shortcut to becoming a property portfolio millionaire. You need the ability to think for yourself, balance the risk reward ratio and ultimately invest on a long-term basis with funds you will not require to maintain your everyday life.
Do you think real estate investment is easy?
If you read the headlines in the newspaper you may be forgiven for thinking that investment in real estate is simple. Invest your money, sit back and wait for the big bucks to rolling. If you think real estate investment is easy with no risk then you need to think again.
What is your investment philosophy?
Are you looking short-term, long-term, or perhaps you have a medium-term goal? While it is always nice to bank short-term profits in any investment, this is very difficult with real estate because of the nature of the business. If you're looking for a short-term bonus then perhaps real estate investment is not for you.
Borrow money, repay and bank a profit, easy?
It is perhaps the expansion of the Internet, the availability of information and the ability to exchange views which has given rise to a dangerous assumption. Towards the more "colourful" end of the real estate market some "experts" are enticing new investors with the promise that they can borrow all of the money to buy a property and not risk their own capital. Do you believe this? Well, where there is no risk there is no chance of rewards - enough said?
Will every worldwide property market eventually come into favour?
There is an old adage in the investment industry, buy low and sell high, which seems to have been adopted by some of the more adventurous real estate investors. When you bear in mind the worldwide population continues to grow, demand for property will increase for ever and a day then perhaps you might be mistaken for thinking that every worldwide property market will eventually come into favour.
No! Many bombed out property markets have remained in the doldrums for decades, falling further and further behind the more in demand real estate sectors.
Do you expect to build a property portfolio in the short term?
The buy to let industry in countries such as the UK has no doubt created multimillionaires across the board with significant wealth and significant income. In some ways this has given the wrong impression to new investors to the real estate industry because it takes time to build up a property portfolio, you need to learn from your mistakes in the early days and property wealth does not happen overnight. If you expect a shortcut to the top league of the property sector then you will be very disappointed and you could be one of the more gullible investors who could actually lose everything.
Conclusion
While this is something of a tongue in cheek questionnaire for would-be real estate investors it does highlight the fact that there is no shortcut to becoming a property portfolio millionaire. You need the ability to think for yourself, balance the risk reward ratio and ultimately invest on a long-term basis with funds you will not require to maintain your everyday life.
