Real Estate offers a solid investment opportunity that can provide you not only monthly income, but long-term appreciating market value that increases your equity. It’s never too late to begin investing in real estate. Regardless of the ups and downs of the market, people will always need housing. Real Estate remains a good way to create personal wealth.
By understanding the basics of real estate investing, you can begin to create a successful investment plan.
Start now – every market offers opportunities for buyers; there is no perfect time to get started. The Horry County and Myrtle Beach real estate market is currently experiencing one of the greatest booms in many years. The influx of people who have vacationed here for years are returning here to retire and make the Grand Strand their next home. Our semi-tropical beach lifestyle is the envy of the country far and wide with no indication that ideology will change any time soon. Because this market has momentum means that we anticipate an expanding resident population influx for years to come. So, become a part of it whether you live here or not!
Understanding the risks – before investing, you should be certain that you have the income stability to manage the investment properly. That includes the ability to cover any monthly mortgage payment if or when you don’t have a tenant occupying the home. Additionally, property taxes, insurance premiums all occur on a payment schedule. It is critical that these expenses don’t cause you personal stress beyond your comfort zone.
Do your homework – know the market and understand the trends which can affect your purchase and ownership. Work with a Real Estate Agent and a Property Manager who are well versed in the market and know how to advise and help guide your decisions.
Invest for the long-term – real estate investing should not be viewed as a “get rich quick” scheme. While you might find an opportunity to have a quick flip, most real estate equity is realized over years not months.
Understanding the expected cash flow – in simple terms, cash flow is what is left over after all expenses are paid. For a rental property, expenses could include mortgage, interest, insurance, utilities, HOA’s, property manager and more.
Understanding tax benefits – real estate investors can deduct all sorts of expenses from their taxes, including mortgage interest, depreciation, property tax, property management fees and more. These tax benefits can help you protect other income. A tax consultant can help you qualify how much you could benefit from owning investment property.
Budget for the unexpected – even the most carefully planned project can have unexpected costs. Have a back-up plan to meet these costs whether it’s a savings account or a credit line.
Real Estate can offer solid investment opportunities. Even a first-time investor can have positive cash flow with careful planning and research. Start building your real estate portfolio now; a real estate purchase could provide a low-risk addition to your other investments for both income and asset value growth.
We specialize in helping investors qualify many of the critical elements we touched on within this article. Please call so we can help you qualify your interest in becoming a rental property owner in Myrtle Beach.