Real estate is one of the most lucrative businesses one can invest in Australia and arguably the rest of the world. Besides just money, there are many other things why many people invest in real estate. Many have a passion for the industry or are exploring different career paths. For some, it could be about the pursuit of greater independence.
For instance, many full-time moms in Australia would want to invest in real estate to keep them distracted in their monotonous lives. For others, it could be just to earn money in a job that doesn’t require fixed time to accomplish tasks. If you are a mom wanting to invest in real estate, you can find tips and a complete guide in this article.
Is Real Estate Ideal for Moms?
Any type of real estate investment can be suitable for busy moms. First, real estate investments can yield significant income so moms can contribute to the total household earnings. Moreover, they don’t require an extensive and expensive college education. You must only take expert tips seriously and study the real estate market to find your edge as an investor.
In addition, if you are going for rental properties, you can just hire a strata management in Newcastle, Sydney, and Melbourne, among other large cities in Australia. Lastly, the most crucial benefit is the flexibility on time, allowing moms to focus on taking care of the family while earning large sums of money as they invest in real estate.
Ways to Invest in Real Estate
There are many ways you can invest in real estate. As a mom, you can opt for the following investment options:
- Residential Properties – covers properties where people reside. Examples are condos, single-family homes, duplexes, multi-family residences, townhouses, and vacation homes.
- Commercial Properties – covers buildings or properties where businesses rent or lease to operate and generate income.
- Raw Land – covers undeveloped properties, orchards, croplands, farms, mineral production lands, and recreational lands.
- Real Estate Investment Groups (REIGs) – business organizations that buy and resell or lease multi-unit properties to investors, who will eventually become group members.
- Real Estate Investment Trusts (REITs) – companies own and manage real estate properties and take in shareholder investments.
- Crowdfunding – is a way to raise capital and access high-return property investments by becoming a property shareholder.
- House Flipping – This involves buying properties, renovating them, and reselling them at a greater price than their original value.
How to Succeed as a Mom Real Estate Investor
Here are some surefire ways to succeed in investing:
1. Talk to a Real Estate Agent
This tip is especially important for beginners. There are many things to consider before starting to invest in real estate. Before putting in any amount, you must be familiar with taxes, shopping for the best prices, property disclosures, and determining whether the market favors the seller or buyer. With a formal buyer consultation, you can discuss all these important things with a licensed real estate professional.
These experts can guide you in navigating the real estate market, securing the best purchase, and ensuring you get the best property features out of your investment.
2. Set Your Budget
It’s also essential to create a budget dedicated to real estate investment. This allotment should cover taxes, insurance, mortgage payments, maintenance, and utilities, among other expenses. Before sealing a deal, you must anticipate all these expenses and have a budget you can access monthly. This way, you can enjoy living in the house or making money from renting it out without any hassle.
3. Build your Credit Score
When buying a house, your credit score will impact how much it costs. You must pay attention to your credit score and try to boost it. For instance, you can rectify credit report errors, pay debts, and settle late accounts.
4. Research Neighborhoods
Do not just invest in a property because of the home’s interior and exterior design. Look into the neighborhood and see if it fits your family’s lifestyle. In addition, it’s also essential to check nearby amenities and facilities so you won’t have to take long commutes to get there. Also, check for crime rates to ensure the safety and security of your family.
5. Shop for the Best Price
Moms should be extra diligent in shopping for the best price. It’s important to note that every real estate agent or lender has different terms and conditions and rates. So, as a discerning buyer, you must look for at least three options to pick a property with the best value in the market.
There are many ways to negotiate a property with a direct owner or a real estate agent. You can try to ask for a home warranty, or you can bargain on the listing price. Make the most of the negotiation and try all these routes.
7. Stay Informed
Real estate is a dynamic market where prices can fluctuate wildly, and design trends die away year after year. That’s why you must keep yourself informed about what’s in and out of the market and how you can leverage these movements and earn more as an investor.
8. Monitor Your Investment
Real estate investing doesn’t stop at putting your money towards a property. You should be keen on monitoring your investment by tracking property performance or income if you aren’t living in it. Start with keeping track of your income and expenses. This way, you can accurately measure the property’s profitability and claim every possible tax deduction.
Investing in real estate can be a complicated business. As a mom investor, seeking guidance from a real estate expert to make informed decisions and ensure you get the best deal out of your money is essential. Besides talking to a professional, follow everything else in this guide to start on the right foot in today’s fierce real estate market.