Have you ever wondered about the type of people who are really successful at real estate investing? Do you have the qualities that are required to find the best investment properties that would provide guaranteed rental income or vacation home rentals that can give you the highest return on investment with minimum effort, stress, and expenditure? Actually, the truth about who exactly is successful at investing in real estate is quite surprising.
The most common assumption about real estate investing is that you need to have tons of money to get started. However, truth be told, anyone can get started with investing in a property if they strategize smartly and buy what they can really afford rather than what they can borrow.
Here are a few common myths that surround making money through investment properties and facts to defy what it actually takes to be a successful real estate investor:
Myth 1: You Need lots of Money to Invest in Real Estate
Fact: A number of successful investors are reported to be regular people with an average household income but did some smart planning so that they could invest in a property.
Myth 2: Only People Over 50 Invest in Properties
Fact: In reality, most of the people who are interested in buying real estate are roughly between ages 30 to 39. These are people who are keen on finding smart, income-generating investments to add to and diversify their existing portfolio of stocks, mutual funds, and bonds.
Real estate investing is a highly lucrative alternative route to building wealth and being a successful entrepreneur. No wonder a lot of people from a younger age group are interested in building additional wealth by investing in real estate.
Myth 3: Only Homeowners Invest in Real Estate
Fact: As in the case of other traditional investment assets such as stocks, alternative investments like real estate are available to investors irrespective of whether they are homeowners or not already.
A few investors who do not own a home are those living abroad, living with their parents, or perhaps serving in the military but still, make money through rental properties.
Myth 4: Mostly Apartment Rentals or Land Comprise of Real Estate Investments
Fact: Real estate has a range of investment options that include income-generating property, vacation home rentals, luxury condos and villas, single-family units, and retail spaces among more.
Usually, most investors own single-family homes which are recommended for new investors to start with due to fewer risks attached and the lesser upfront cost involved.
Followed by that, the other common type of investment property as per studies are duplexes, triplexes, and quads of 2-4 units, and then undeveloped land, and lastly small apartment buildings comprising 5 to 50 units, large apartments having more than 50 units, mobile homes, and commercial properties.
Myth 5: Real Estate Investors Live and Invest in Flourishing Cities
Fact: People living in all parts of the world have turned out to be successful real estate investors. Increasingly people are investing in income-generating investments such as vacation home rentals that are far away destinations but have outstanding tourism numbers and occupancy rates to combat the stock market’s discouraging return on investment figures. The stock market has shown less than 5% returns during inflation in comparison to about 10% from investing in real estate.
Finding a great deal and producing a positive income flow in the city you invest in is what makes a successful real estate investment.
Real estate investment is plagued by a lot of such assumptions and myths that discourage investors from taking the plunge. But in reality, it is possible to make a smart real estate investment, no matter what your age, location, or financial background is.
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