How to Be Smart in Real Estate Investment as a Millennial

Many millennials are coming to the realisation that having your own home is better than renting an apartment or a standalone house. People are going to spend most of their time at home now, and they might as well invest in their dream homes. If you are considering real estate investment as a way to provide housing for yourself or as a source of rental income, here are some tips to help you make smart decisions.

Choose your materials carefully

Materials are the most important aspect of building a home. Poor materials contribute to poor construction work and poor quality. And you don’t want that. So, when choosing your materials, make sure you choose the best possible materials. If you are choosing a real estate company or a construction company, make sure they use the best quality materials to build houses. Property developers in Sri Lanka, the likes of John Keells Properties, for example, are very meticulous when it comes to choosing materials for their construction work. So do some research and make the right decision.

Prefabricated materials

For cost-effectiveness and less use of energy, you should think about using prefabricated materials. These are easy to use and environmentally friendly. And using prefabricated materials will reduce construction and labour costs as well.

Keep track

There are e-monitoring facilities that let you keep track of your construction project around the clock. E-monitoring offers live videos and pictures of the construction site. This will help you incorporate new ideas and also make sure everything is going to plan. This kind of technology also helps compile construction reports so that you and the company know what’s going on and what needs to be done.

Communicate and collaborate

Lack of communication resulting in poor collaboration is the main reason that many construction projects fail or take a long time to complete. This is why it’s important that you communicate with the company on a regular basis; the company should be good at communication across various channels and departments. Seamless collaboration achieved through effective communication is the best way to make sure that your construction project is going according to plan.

Detach yourself from the property

If you want to buy a house instead of building one to rent it out to someone, you should learn how to detach yourself from the property. For example, if you drive up to a house and tell yourself that you can see yourself living there, you probably should drive back.

Many new investors fail to consider the needs of potential tenants when buying a house and end up purchasing a property that is not suitable for rental. This often leads to difficulties in finding tenants and can be a costly mistake. If you want to invest in a rental property, the first thing you need to ask yourself is, does this make sense financially?

Buy a property to flip or several properties to rent

You can start by buying just one property so that you can sell at a later time for a higher price and make a quick profit. This is a great way to learn everything about real estate investment.

As for rental properties, it makes sense to buy more than one. If you have only one and it’s vacant, you are going to lose your income. So, buy several properties and put them on the market to rent. Also, you should make sure that all these properties are located within a short distance of each other; you wouldn’t want to spend too much time driving around whenever you need to visit your properties.

Don’t forget insurance

If you have rental property, you need insurance; there’s no way around it. If something happens to your rental property and there’s a lot of damage, your insurance will compensate you. Also, it’s important that you choose the right insurance policy.