4 real estate investment experiences are always true at all times

There are many ways to invest profitably and a well-known way is to put money into real estate. Most people want to become a billionaire by buying a beautiful piece of land in just a short time.

But Charles Clinton, co-founder of the online investment platform EquityMultiple, said Any form of investment has profits and risks, including real estate. She believes that anyone considering investing in real estate should keep in mind the following four classic principles.

Real estate is only one part of a diversified investment portfolio

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Clinton advises investors to consider real estate as part of an investment portfolio of many different asset types. This is the principle of investment diversification to manage risk. Accordingly, each type of asset has its own level of risk and when combined together will help reduce the risk of the entire portfolio.

This expert advises that each individual needs to choose their own portfolio. suitable investment assets after evaluating goals finance as well as the ability to accept risk. You need to answer the question of what role this real estate plays in that investment portfolio.

Location is extremely important

With a non-real estate asset you can easily own and then rent out part or all of the property But for real estate assets, this will not be easy to do because rental demand depends largely on the location and type of real estate.

Clinton believes that many people choose apartments. housing based on living and working needs, but this method does not guarantee that the property will increase in value. This is not real estate investing. When investing, don’t limit yourself to the area where you want to live or work, but pay attention to areas with development potential.

Aim for areas surrounding the city that are trending. development. Then buy land on the roads main traffic.

4 real estate investment experiences that are always correct in all time - 1

Beautiful location is one of the important things to note when investing in real estate (Photo: Tran Khang).

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Expensive

Clinton said the goal of investing in real estate is to make money from rentals or increase value. She advises investors to buy real estate with the best value even though the price may be higher than the ground.

The best things will always retain their value and generate profits faster than others. normal things. Today the best things are always expensive but tomorrow they will have a much higher value.

For example, when you invest in an apartment in a high-priced building in the city but With great design, convenient location and suitable area, the house will continue to increase in price. Even when you invest in renovation furniture, the value of the apartment will increase significantly.

It is impossible to predict the market

In the context of rising interest rates and falling asset values, this expert believes that this may be a good time to invest. But remember, you cannot accurately predict the market. Unexpected things can happen at any time.

Over many periods of time, real estate has always been proven to be an effective investment industry. But it is also a game of measuring patience. Determining the rules of the real estate market is difficult, especially in just a short time.

Especially when the real estate market goes downhill, trading activities as well as general psychology are all gloomy and it is difficult to predict when they will recover. Many people lose money because of the illusion of earning double the difference within 12 months.

Clinton believes that when investing in real estate, you need to stay calm and control yourself. Make sure you stay steadfast and persistent with your long-term vision.