Kimberly Dey: What to Consider When Investing in Real Estate?
It’s no secret that real estate is one of the oldest and most effective vehicles for wealth creation.Kimberly Dey, however, cautions against young investors from thinking it’s a foolproof way to getting rich. While many have made their riches in real estate, not everyone turns out to be successful. Here are the three things to consider before jumping the gun:
1. Investment Purpose – What are you buying the real estate for? Kimberly Dey explains your purpose will dictate your strategy. For instance, will you lease the property to enjoy a passive income stream? Or maybe it’s your dream to own a home and you want to save on rent. Kimberly Dey adds that investors should have an idea of their investment time horizon, whether it’s for the short-term or long-term.
2. Location – There’s a reason why experts still clamor, “Location, location, location” whenever they’re asked about their investing secrets. Kimberly Dey cannot emphasize enough how important the location of the property is, especially if it’s going to be leased. In general, investors should want to have a property that’s near necessities such as transport hubs, schools, markets, etc. She adds that the closer the proximity, the higher the valuation of the property. Additionally, investors should take a long-term view about the location of the property. Today it may just be a patch of land, but a decade from now, it may be at the center of a bustling commercial district.
3. Finances – Last but not the least, what does your financial house look like right now? Kimberly Dey warns that investing in real estate is not for everyone. If you so happen to change your mind one day, you can’t just easily dispose of your property much like you would when selling a stock. She adds that investors should think about the mortgage as well, whether they would take a fixed rate or adjustable rate loan.