A quick questionnaire to see if real estate investment is for you

Discussion in 'Property Market News and Trends' started by totallyproperty, Oct 25, 2014.

  1. totallyproperty

    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.
     
  2. DebasishSaha

    DebasishSaha New Member

    Yes It's Very Easy
     
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  3. Winecountry

    Winecountry New Member

    Okay, nice article. Real estate investor job is very difficult and full off challenging task. you have to update your self with every trend and up-dates of the market.
     
  4. AshleyJohnson

    AshleyJohnson Banned

    Really great article. Real estate investment is not a easy task.
     
  5. AndrewJoseph

    AndrewJoseph New Member

    I think your recommendations are excellent. In real estate, bigger is not always better. Top agents, although big money-makers for themselves, often have their "team" handle the day to day details. The big franchise offices also charge a ton of extra fees, both to buyers and sellers. Most buyers do their own homework, and find their dream houses. Any agent that is a savvy negotiator is worth his/her weight in gold. It is truly an art form to negotiate a solid deal, and many times, those great negotiators are with the smaller offices that have state of the art technology, but possess the old fashioned values.
     
  6. nmb

    nmb Well-Known Member

    Let's be honest, if real estate was that easy then everybody would be doing it? The moment that a property investor begins to get a little blasé about their investment activities is the time they are likely to be at greatest risk. There is nothing wrong having an ego and the confidence to back your own decisions, but never discount the comments and views of others.
     
  7. Andrey Sokure

    Andrey Sokure New Member

    Real estate investment isn't a easy task, Agree!! but we can make it easy with our skills and afford. I have started investing in the year of 2006 and now i can say that investing money in real estate is easier, anyone can invest in the real estate, if you have dedication toward your business
     
  8. T. Al - Jalilee

    T. Al - Jalilee New Member


    In my humbled opinion, If you have money and a bit of common senses with guts and patience to wait few years, the Real Estate Investment is an easy business task providing you have some ability to make the right choice in the type of property ( Land, Villas, Apartments, Residential, Commercial, Industrial etc. ) and have some knowledge to foresee the possible risks( Calculated Type ) and how to mitigate it. Investment in Real estate in North America is well protected and profitable though profits are taxable. However, Investments in general in the Middle east is risky as there are no Laws & Regulation to regulate the Industry and to protect the Investor's money. This depends on your skill and experience in the process of Risk Assessment & Mitigation I have invested in Nakheel company ( Nakhla jabal Ali Project ) and Also in Amwaj Islands in Bahrain, the results were great. I also invested in Chapal World in Emirate City in Ajman and also in Durrat Al Bahrain and Gulf Finance House Projects development schemes, all turned to be disasters and brought me nothing but nightmares . Be careful, particularly when you think of investing in the middle east where accountability and Investor's Protection Laws and Order are missing.
     
  9. Mahi Meheta

    Mahi Meheta New Member

    Really Great Article. Its true that Real Estate investment is not much easy task but it's good investment comparative to other sectors.
     
  10. Bradley M

    Bradley M New Member

    I'm agree that real estate investment is not easy, but it can be highly profitable if you know what you’re doing. So this questionnaire is a great way to find out if you are ready to make money on real estate market or not. A good real estate investor must be able to understand market conditions, estimate how much time and money it'll take to rehab properties.
     
  11. Lincoln Boland

    Lincoln Boland New Member

    Hello,

    Investing in real estate is one of the oldest forms of investing, having been around since the early days of settled human civilization. Predating modern stock markets, real estate is one of the five basic asset classes that every investor should seriously consider adding to his or her portfolio for the unique cash flow, liquidity, profitability, and net worth characteristics as well as the diversification benefits it offers.
     
  12. Tanya Daye

    Tanya Daye New Member

    Hi,

    Helpful Article.Very nice Information Sharing
     
  13. nmb

    nmb Well-Known Member

    It will be interesting to see how many property investors who got burnt during the worldwide economic downturn come back to the property market. Will everyone have learned their lessons from the downturn? In my experience many investors have short memories :)
     
  14. Andrey Sokure

    Andrey Sokure New Member

    If you have proper business planning, downturn in the property market could not affect you much. I am from Minneapolis and at the time it's hard to find the property to invest here, But still, I managed to find homeowners to work with.
     
  15. jrtbartley

    jrtbartley New Member

    Thanks for this, great article, very helpful
     
  16. realdeals

    realdeals Active Member

    While I have been on the site for a number of years now, it is good to look back and read some of the older posts.

    Those looking at a career in property investment need to be realistic and sensible - if you dont make mistakes then you are not pushing yourself hard enough and if you dont learn by your mistakes you are in the wrong industry!
     
  17. Jason Scurry

    Jason Scurry New Member

    Investing a property is not easy, many challenges and things to consider. This article is Informative and helpful. Thank you!
     
  18. diyhelp

    diyhelp Active Member

    In answer to your questions, those who believe real estate investment is easy will be in for a shock!

    My investment philosophy is to buy on a long-term basis, if you get the chance for a short-term profit then maybe take it.

    Sensible leveraging of your assets is the key here; borrowings can be extremely useful if managed correctly.

    Real estate investment trends will change on a regular basis but there are some markets which are “off the radar” and have been for some years.

    Short-term targets in real estate are often unrealistic but if you take a long-term approach you can build an extremely strong income stream, build up a portfolio of assets and also bank profits along the way.
     
  19. Ryan Lin4511

    Ryan Lin4511 New Member

    That's worth reading article!

    Ryan Lin
     
  20. realdeals

    realdeals Active Member

    For me it is simple, to make money in any asset class takes time and effort - property investment is no different. There may be some innovative ways of raising finance but ultimately you need to do your research and hold you nerve (both on the upside and the downside). Property is a long term game - if you can bank a short term profit then great but dont rely on this type of strategy, it could go terribly wrong!
     
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