5 things you must know before investing in real estate in 2022?

Check out these 5 smart ways to invest in real estate without regrets in 2022.

Have you ever heard the saying ‘Mind Over Matter”?

More than anything ever listed as a way to not lose money as an investor this has to be not only the foundation but the most important aspect of all.

Get your mindset right. If you do not, you will try to force the wrong things into lace or the right things into wrong timings and it will all fall flat like a pack of cards would fall without being held in place.

2021 ended with a fervor of attention on acquiring investments to increase cash flow and wealth. After seeing the “flashy” invitations, of a number of investment opportunities fall dead in the water – the most recurrent question became ‘How do I start investing in real estate? Real estate has become the net shiny asset to invest in.

As an investor, if you have finally come full circle to appreciate the true principles and benefits of real estate investing then you are halfway there because your mindset would be at the least 50% ready. But if you have yet to understudy how it works and/or the rudiments of assessing its investment features and numbers then you won’t have more than an exaggerated estimate for how they could fare.

A typical example of how mindset matters in real estate investing is the fact that too many people say “I don’t have the millions I keep seeing. So how do we move forward with this?”

Simple answer is – “We don’t move forward from this”

If we do, there is a higher potential that we will crash land and be pulled backwards – which will be a massive waste of energy and resources.

So instead of that, start from the beginning – with the right questions that define who an investor is.

• Who is an investor?

An investor is someone, organization or an entity who commits capital with the expectation of receiving financial returns. … Investors can analyze opportunities from different angles, and they generally prefer to minimize risk while maximizing returns.

• To be a successful investor, there is the ONE question that you must ask yourself; do you know this?

“When do I want to make my money – now or later?”

• As an investor, are there areas you want to focus on?

Being able to answer these questions will set the underlying precedence and serve as a guide for how you start to invest.

Then here is where you are ready to embrace the top 5 ideals of a successful investor by way of the investments to be chosen.

A winning investment opportunity would have the following criteria:

1. Be one that requires the least time from you – as an investor, time could be your most valuable resource and you don’t want it spent on a certain project
2. Require the least effort – which is kind of similar to the above. Just like time, if you could have the freedom to do more of it from you.
3. Mandatorily have security of posing the least risk at most times – its tenable to note that risk is a norm with investing what is needed is to get the option with the least risk (and mostly for you, yourself and YOU
4. Present the best profit ranges – you are in this to make money, right?
5. Be an option that is rendering service to others – it’s a long standing rule of thumb that the wealth of our businesses and/or investments are in the people around us. They are the ones who pay the money that becomes the profit and wealth you seek.

I bet that you never thought of it like that …… you are welcome but stay with me for the last but not least criteria

• Be able to withstand the modulations of the economy and circumstances it will need to operate in.

Let me take some extra time to explain this last criteria.

An investment that has a fixed life cycle would crash in times when the economy (for lack of a better word) is inflated or deflated. Products like these are mostly classified as ‘good to have’ not the must-have to make life work.

Real estate is an asset class that whilst it can adapt both ways, there are some options for real estate investments that cannot cope as such. 

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One of such options that I like to think of in this manner are the luxury homes. In a recession, such assets if not optimally managed will become redundant and be the source for additional exposure. However middle income and affordable homes with a strong value proposition in terms of price to be sold, rate of appreciation and the quality of life it can enable.

Now that you have read my thoughts about how you should step into real estate investments, the choice and final decision is all yours to take and/or implement.

Remember! Plans are useless, planning is indispensable.

Till next week, when another article is launched – Salut!