The Magic 8 Ball is a fantastic tool. Using its magical powers to see into the future, it can turn you into an instant millionaire using two simple words. Yes and No. Is this a good investment? Yes. Is this a good investment? No. Ask these questions enough and you'll be a millionaire before I finish writing this blog post.
The same thing happens in real estate but clients use a realtor to answer Yes or No. But how can you ask us "Is this a good investment" if you don't know what type of investment you need? There are many different ways to invest in real estate, some with more risk then others, some that have a positive cash flow while others have high appreciation, some that are worry free while others need a constant baby sitter.
So the real question one should is "Is this a good investment FOR ME?"
To answer this, you must sit down, discuss, and decide what type of investment is best for you. Here are some questions you need to answer.
1) How much risk do I want to take on?
2) Am I looking for an Instant Return or a Long Term Return?
3) How much time and work am I willing to spend on my property?
4) Are there any locations where you don't want to invest?
5) Once I invest, do I want my mortgage to start right away or in the future?
6) How much do I want to or can I afford to invest?
These are the questions you need to ask yourself. No one can answer these for you. Not even the Magic 8 Ball because we all know that we will shake the 8 Ball enough times until it produces the answer we want to hear.
For an analysis of your investment needs, Insider Condos would be happy to consult with you and devise a plan that you are happy with.
Stay tuned for Part 2 of this blog post so you can find out some of the different types of investments and which ones will best suit you. (Considering you answered the 6 questions)