UGANDA, Kampala | Real Muloodi News | Real estate investment can be an incredibly lucrative field. As a beginner, the investment may be in purchasing properties and building on land that has not yet been developed, or renovating and improving existing buildings.
No matter what kind of real estate interests you, the first step is learning more about it and where you can go to acquire the knowledge and skills that will enable you to succeed in this area of finance.
According to the businessman and a mortgage loans officer, Ahkeem Henderson, real estate has a steep learning curve and several entrance barriers for beginners.
If you have never wished to become a landlord, that’s alright. Ahkeem says you don’t have to become a landlord to make it in the real estate sector.
There are several other ways to invest in this business. Whether or not you’re a landlord, if you want to make it big in real estate, learn where and how to invest appropriately to avoid making losses.
Ensure Your Finances are in Order
One of the essential factors in real estate investment is startup capital, according to Ahkeem. If you want to buy a property, your finances should be enough to purchase the property you wish to or at least deposit a more significant percentage on it.
The startup costs is perhaps one of the greatest entrance barriers to real estate investment, says Ahkeem.
You also have to save for the other costs, such as property taxes, appliances, renovations, and utilities, among others.
If you rent out the property, ensure the rent collected will cover your mortgage. Alternatively, with the help of professional contractors, you can flip the house to earn from selling it.
Start Your Rental Career by “House Hacking”
House hacking means you become a landlord while you’re still living in your building. When the finances become scarce, some people opt to rent rooms in their own homes to help pay off the mortgage.
After saving enough, they can start hunting for another property to buy or rent out.
If you love the privacy and are not interested in living with strangers, buying a duplex or multi-unit property would be the best option. These kinds of the property allow you to live there but separately from your tenants.
Ahkeem says being a landlord comes with some responsibilities, such as replacing appliances and fixing repairs as needed on the property. Depending on your rental agreement, you may also be responsible for lawn care and upkeep.
If you have multiple properties and probably don’t have time to manage them, Ahkeem advises hiring a property manager. However, the manager costs may cut your profits and could slow down your income stream if the properties are few.
No matter how you get started before taking your first big step, consult with your mortgage lender or financial advisor, says Ahkeem Henderson.
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