Having your own home, real estate investment is an Australian dream of many. While some are able to turn that dream into reality, many of us are still on the quest to find our dream house. But if you thought to be a homeowner/landowner is all sunsets and roses, think again! Yes, it is definitely rewarding, but it comes with its fair share of surprises. The real estate has many risks associated with it. However, that doesn’t mean you can’t invest in real estate; you just need to be more informed about the goings-on in the industry. Real estate investments have helped many people earn a fortune if you want to join the list too, here is a lowdown on how things get “real.”
Purchasing:
Expectation: Buying a house in your dream locality is fairly simple. All you need is a pre-approved loan and deposit and you’re inches away from your big dream!
Reality: Keep in mind that property investments may require greater down payments and you might need to take into consideration all the requirements to get that pre-approval. Don’t forget your credit history as well as disposable income, expenses needed for repairs/renovation, lifestyle etc.
Expectation: You’ll probably be living in or renting out in the property for at least 10 years or above.
Reality: The average first-time homebuyer tends to move or sell their property within the first 7 years.
Selling:
Expectation: Your current selling house is worth much more than what you paid for it when you bought it. So, the ‘market’ must have surely increased.
Reality: Just like other investments (e.g.: stock market, bonds, mutual funds) real estate prices are as competitive. Your real estate agent might help you fix a price for your home. Ultimately, the value of your property is what a buyer is willing to offer as per the current market rates.
Expectation: Your property has many benefits that you have made the most of, surely many buyers will be keen on it. You’ll be able to sell within a few weeks’ time!
Reality: What attracted you about your investment property may not be of much interest to other buyers. Every buyer has his own preferences w.r.t locality, connectivity, amenities etc. Have patience, your property/land could be on the market for a while before you are able to close a deal.
Expectation: Your real estate agent will be in constant touch with you with nearly real-time updates.
Reality: You are likely not the only client of your real estate agent. It is very difficult that your agent will be available on call 24/7. Just trust your agent as they will always work in your best interest.