Smart Investments 101: Important Lessons You Learn from Successful Real Estate InvestmentsAugust 29, 2018
“People are realizing that real estate is a smart investment to make, a safe investment. It is one of the only investments where you are pretty much guaranteed to get a return on your money.” -Bonnie Fitzgerald
The real estate market has always been operating at a sporadic pace.
At one point, you can be experiencing the highest payoffs and on the other, the market can be incredibly sluggish and leaving you without leads nor anywhere near a successful sale. Without a doubt, booms do not last perpetually and more often than not, they are surrounded by busts which could last anywhere from a few months to entire years–depending when the time would be right. Unfortunately, no one can accurate predict real estate market trends which would often by influenced by a myriad of factors with the people’s attitude and purchasing power being one of them.
However, what you can do as a shrewd and smart investor is to instead leverage your investments and refine your investment strategies. Some of these lessons can be learned from successful sales and deals–whether you may be selling a unit in Arca South or elsewhere. As a would-be real estate investor, it is your responsibility to keep them in mind. Here are some of them:
1.) Booms are not eternal
As a budding real estate investor, you should know that booms do not last perpetually. Exploit them as they occur but do not make the mistake of relying on them forever. What you can do instead is to observe the cyclical trends of each boom which would then prime it up for the next bust–which will inevitably happen. Remember, just because the market is buoyant and robust today, it does not mean that it is untouchable and would not be affected be a property bust. Do not let the prospect of this sidetrack you, instead, prepare sufficiently for it.
2.) Do not listen to the naysayers
You cannot reasonably expect for everyone to be in agreement with what you do. There will always be people who would tell you that what you are doing is not sustainable and similarly, there would also be a group of individuals who pose as seers and would foresee property prices declining or even plummeting. Remember, downturns are already bound to happen anyway, so do not worry about them too much. Instead, engender a strategy that would help you best prepare for them.
3.) Get-rich-quick schemes are to be avoided
No sound investment on earth would make you rich overnight. You should already know this by now. In this regard, you should also know that real estate is a long-term investment and commitment. If you do not think you can commit to that kind of timeline, then it is best to get out while early. While real estate investments can be incredibly lucrative, preconceiving it as an avenue to get immediate payoffs would ultimately disappoint and frustrate you. Patience is a virtue–especially when it comes to significant investment. So, learn to embody and adapt the virtue.