Residential Real Estate Investment

 

It’s never a wicked knowledge to invest in real estate. It provides potential investors with various financial and personal benefits, including home appreciation, increased cash flow, and tax benefits. But knowing the type of investment deal as a beginner or an experienced investor is vital. Long-term residential rentals are one of the most common ways to profit from real estate. The choice for residential property is not an overnight decision because it requires strategies with their own set of advantages and challenges. Investors’ principal motivations and aim for choosing residential real estate investment almost always revolve around the funds, risk tolerance, and time. 

It is vital to note that people require a place to live today, which necessitates involvement in the rental market. Residential property is only used for personal purposes, and examples include apartments, apartments, and duplexes. Moreover, rents collection is not the only revenue source derived from a residential property regarding residential investment. Auxiliary property investments and real estate appreciation are also reliable sources of income when investing in residential property

In my opinion, if a stakeholder …

Read More →

Entering the World of Investments

Whether you are a new investor or have an established portfolio, investing in any area can be scary and confusing. There are many different ways to invest your money, but how and where you do depends on many factors. The one term that encompasses all these factors is risk tolerance. When investing, you always need to ask yourself “what’s my risk tolerance?”

There are 4 key factors when analyzing your risk tolerance.

1: Your investment time frame

This may be the most broad factor, but it has rung true for most investors. the main logic behind this is the more time you have to invest, the more amount of risk you can afford. Say an investment goes south while you are still relatively young. You have a greater amount of time to make up for this loss compared to a person a little older. However, like I said before, this is a very broad rule and further considerations are needed to decide which investment is right for you.

2: Your Risk Capital

The amount of money you actually have to …

Read More →

Clawing your way back

I thought it would be interesting to show a small table that outlines the issue with losing money, the figures below show what you have to ‘make back’ to get to break even depending on a certain amount lost.

Loss Return needed to regain original sum -5.00% 5.26% -10.00% 11.11% -20.00% 25.00% -30.00% 42.86% -35.00% 53.85% -40.00% 66.67% -50.00% 100.00%

It’s easy to see that it gets harder to get back to zero the further you fall, the most obvious example being that you need 100% growth to break-even if you lose 50%! Just something to keep in mind as you are investing or weighing up risk in the things you invest in.

Read More →