A famous Chinese axiom is; “The best time to plant a tree was 20-years ago. The second-best time is now.”
You’re probably thinking that it’s already too late investing in real estate by the age of 40s, 50s, 60s or even 70s but, think again. Property investment isn’t restricted to age but does require exceptional skills and unique experiences to gain advantage. But then at this age, you probably have a lot of savings than a typical 23-year-old trying to make real estate purchase.
It means you also carry experience of real estate having a home and been through mortgage financing but, there’re always some pitfalls to look for and proceed safe and smart. Have a look at a few ways to begin real estate investment at later stages of your life.
- Grow& leverage your social network
If you’re also under the impression that the 23-year-old individual has a social network like yours, forget about that! Better approach your elders and double the strength of your existing network. Before you proceed, ask yourself:
- If you know someone, anyone in the real estate industry? In the mortgage business? Among the construction and contracting industries so on.
- Are you familiar with someone having enough money and willing to invest in a real estate project?
It’s possible that your local electrician can refer more trustworthy and affordable contractors then the real estate agent operating in a particular area. Join social media networks of property workers, participate in forums talking about investments, register at local wholesalers and turnkey providers to start assembling the dream team.
- Capitalise on the assets
Having extra capital surely gives you a competitive advantage. Perhaps you can conveniently spend and drive a challenging negotiation as well as sidestep the finance liabilities. You may even afford a healthy down payment thus avoiding mortgage insurance, rely on sellers franchises and so on. Simply put, having more money at your disposal is a huge plus as you can decide anything between rental investments or straight buying. Use it according to the advantage, negotiate hard, get the best out of financing, be swift on the deals and take the winning lead.
- Rethink on house hacking
There’re many different classy and profitable multifamily units to consider. Don’t simply overlook if your previous experience with such type of real estate have been less exciting. Still, if you’re committed to reside in a single-family home, rethink on the various house hacking ways but first, you need to buy a home, perhaps an apartment and add it over a garage, in the basement, something having a separate entrance. Whatever you do, do it smartly and if yours is a modern villa in Dubai, there’re plenty of ways to smart hacking as long as the real estate laws in the area allow.
- Have your eyes on the prize
It’s obvious people invest in real estate for many different reasons and for the elderly, “passive investment” is at the priority list. The best thing about real estate investing is the ability to forecast on accurate returns before you even deposit a single dollar.
This is because you’re well aware of the market rent, neighbourhood vacancies and their rate, local property management cost, insurance, taxes on the units and other such. You also know about the type of cash flow to expect allowing you to invest only that which is profitable in future.
Don’t sell any of the assets which produce rental income because the rate fluctuates and perhaps you’d have more.
- Double-up the extra savings
Being older means you’ve probably been through that entire “budgeting” thing for some time during which you might’ve learned some new ways to go or struck in the traditional strategies. When younger are promoted to a more prestigious designation, the first thing they do is find new ways to spend the high income that can be a ritzy apartment, a classy car and so on. It’s known as lifestyle inflation and it’s totally unwise.
So if yours isAl Sufouh villas, consider smart rental investment ways to make it profitable!
