Real Living Wareck D'Ostilio
The Urban Specialists, Real Living Wareck D'OstilioPhone: (203) 668-7350
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The Market: Is it Ready for My Investment?

by The Urban Specialists 10/11/2020

Photo by Edar via Pixabay

You’ve been considering an investment in real estate but are you really ready? Putting your money into something you haven’t done your homework on could be detrimental. You may even have all the tools, but are still straddling the fence. How will you know it’s time? Here are a few signs that indicate you have some ways to go:

Long-term Investment Strategy

If you don’t have one of these, you aren’t ready. Although flipping homes and other elements of getting into the real estate game may seem attractive, all the income coming in is tied to you doing “work.” When you stop doing it, the money stops to. An actual investment strategy means once you’ve found the home, did the work and found the tenants, the income continues rolling in. That means your assets continue to grow year after year.

Finances Need Work

Are your finances in order? That means you’re living below your means and are saving a good amount of your income. How’s your rainy day fund? If you don’t have at least three, six to a year’s worth of expenses that you can quickly get to, investing in something that may not give you a return on your investment doesn’t really make sense.

Insurance

Do you have insurance? It’s important to have at least a term life insurance policy that’s 10 to 12 times your income.

Credit

Unless you have the cash to pay for your investments outright, you need to have a high enough credit rating that allows you to get the financing you’ll need. While your credit doesn’t have to be perfect, it should be good enough and showing indications of improving over time.

Capital

Capital is the name of the game. You should have access to enough capital that will allow you to secure long-term financing to get those properties when you want. Take a look at your risk profile. Purchasing high quality, low-risk property instead of maxing out the capital you have can make a difference. If you don’t have the capital, you’re not ready.

While you’re giving these areas some thought, it’s also a good thing to look at the market. While there are always ongoing talks about a recession, consider the stock market. Which one is riskier? Market stats are usually based on the entire country, but real estate stats are only based on specific cities, properties and neighborhoods. That means even if a recession hits, each property is impacted in its own way.

It’s time to study how to beat a recession if one hits and know the fundamentals. If you have a property that provides significant cash flow now, chances are it will during a recession as well. If you have quality properties in high-demand areas, you can withstand a market downturn. The goal is to make a recession an opportunity if you can. It's time to get things in order. If you purchase the right property in the right area, you’ll be just fine. 

About the Author
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The Urban Specialists

CITY RESOURCES The great thing about urban centers is just how much stuff you find around you. Your favorite restaurants, cultural activities and museums are within walking distance of your front door. It's convenient and adds to how much you get out of your place. For more info on New Haven, check out these links: Info New Haven Visit New Haven We are passionate about the environment. We are eager to help you to add value to your current home, save money on utilities, make your lives more energy efficient and eco-friendly, and generally live a "greener" lifestyle, all without sacrifice. For more info on green living in New Haven, visit these sites: CT DEEP Neighborhood Housing Services of New Haven USGBC's Green Home Guide We care about historic properties and their communities and wish to encourage preservation of our community's architectural and cultural history. For more info on New Haven preservation, check out these links: CT Trust for Historic Preservation New Haven Preservation Trust Historic Homes Downtown Areas Neighborhoods Green Homes Bethany Branford Guilford Hamden New Haven North Haven Orange West Haven Woodbridge Olivia C. Martson Olivia Martson is a long time resident of New Haven. She lives and works in downtown New Haven and is thoroughly familiar with the pros and cons of urban living. From 1992-1997, she served on the New Haven Board of Alderman as the elected representative for Ward 2, the downtown neighborhood immediately west of Yale University. Fore more : Biography - http://media.mlspropertyfinder.com/418613/preview.jpg