I have been observing people and it seems that ones anyone with an investor mind gets any money the most common investment they go for is real estate.
This is because i
ts seems easy to get into than the stock market. i mean what is so hard in buying apartment buildings and renting them out?
But there are many factors to consider when looking for real estate:
1) are you interested in raw land or in developed property?
2)do you want to invest for capital gains or for cashflow?. Capital gains investing is when you buy a house at a low price and wait for the price on that property to increase and then sell it. It is also referred to as flipping property. This “buy hold and sell” investing is no good as there is no way to be sure that the prices will go up. Cash flow investing is where you buy a house and then rent it out. This is really encouraged because if you do it really well you are assured of a consistent income.
3)are you informed on the tax incentives in the country you are in? if not make sure you do as some types of real estate have more tax advantages than others. Consider looking for a competent real estate lawyer
4)do not do it just because you know someone that does it and is making money from it. take your time to research about it and learn the most you can about it.
