Investing in 2022. Is it a good idea?
Often we look towards the end of the tunnel too fast when it comes to investing. The important thing is see the market now and where it is at today. That is what you know. You also know the basic fundamentals needed to make a good investment. Is this longterm? Am I able to sustain and manage this house with my time and financial situation? Is my plan to create cash flow or to simply build equity? Will I be able to hang in there for the longterm? Longterm thinking is the key to a good decision.
“Often we see making money at the end of the investment. We need to think of the money at the beginning when we are going to buy this asset”
– Pennie Carroll
Things You May Not Know About Getting Into Investing This Year.
“I remember when my sons got into Real Estate and they eager to start buying up investment properties. What we found out is there is a time – right and wrong!” – Pennie Carroll
Unfortunately forbearance is a real thing in the Des Moines community. People need to downsize, refinance or are job transition. The reality is that banks then may end up owning the home and that home then becomes on the market. Doing your research on homes that the banks are looking to sell is a great place to start. But it is not that simple. Banks are interested in doing Bank things. Meaning, your interest in investing may be put on the back-burner and you very well may experience delay. So you look to the current market.
A longterm vision includes making a great decision for down the road. Taking into account amenities, location, condition of the house, and the development of the community are key to landing tenants right off the bat. Not only tenants, but the appreciation of the property as well. An easy way to do this is to talk to your Realtor who can guide you through what aspects of the property will bring value or decrease value over time. Weighing home improvement projects versus the slope of the topography of the property are good things to consider with your Realtor.
Chances are you are an ambitious citizen looking for opportunity to invest your money and you feel time is of the essence. Although true, making a good decision in the beginning is what determines your outcome. Take a step back, save a little more, then execute a well thought out investment plan that sets you on the right track.