Investing in real estate takes a lifetime to learn and if you can get it right in this space at an early age, then the sky is the limit as for as earnings go. Nowadays, there is a high propensity amongst young professionals to use their future income through mortgages, credit cards and use revolving credit facility to the hilt.
Why real estate remains the preferred cash cow?
- In developing countries where banks offer high rate of interest on saving bank deposits that are a form of debt, it is interest income that runs households of senior citizens who prefer staying away from their children rather than with them as was the norm, two decades ago.
- Middle-aged people know that the future may not always be bright and therefore borrow less and invest with a long- term view in mind. Senior citizens know that their medical expenses will rise with each passing year and they want the highest return on their past accumulated wealth and current income.
- They do not have any faith in their future income and neither do they want to depend on kids to bear their expenses. Hence real estate stays the preferred source of income as cities grow horizontally and vertically. Earlier, it was land that used to get sold but now it’s the sky that is bought in leading megapolis of the world.
Why outsourcing your management makes sense?
Numerous benefits abound for home-owners who choose to outsource their property management to professional brokers as they assist with the following:
- Tenant screening: Selection, negotiation, rent collection if due and consequent eviction as the home-owners’ advice. routine property inspections are also carried out by them to check for repairs or damage.
- Effective marketing of the property in question can be done by seasoned real estate professionals and they cleverly hide the flaws of the property and sell the positives to fetch a higher price. They do it for a living and they do it well as their daily bread depends on it.
- Adding value to your real estate investment: A well-managed property always delivers a good impression and tenants are willing to pay higher rents for landlords who outsource their management and leave property management in professional hands. Buying, selling and leasing the property becomes a breeze as you save time by leveraging the experience and resources of a property manager.
- Immediate benefits count: Getting rents on time, securing the property from bad tenants and undue damage and stays in sync with relevant property and taxation laws.
- Shorter vacancy time-periods: This is the biggest advantage as professional brokers have a pool of tenants looking for property which the owner does not have. You can leverage this asymmetry of information that prevails in the market to your advantage.
- Save yourself from potential lawsuits: Real estate market is afflicted with crooks who conceive rental scams that are directed at ownersand save you from huge risks to your property, peace of mind and