Real Estate as an Investment

August 22, 2016 | Higgins Group Real Estate

Property valueIf you’re thinking about purchasing an investment property for the first time, you’ll soon discover that there’s plenty for you to learn.

Investing in real estate can be quite complicated, as there are legal and financial aspects, as well as extensive requirements involved. To be successful, you need plenty of research in order for you to build a solid foundation of knowledge, before you buy your first investment property.

If you’re looking for an investment property in Fairfield, now is a good time as trends show a 3% year-over-year increase in median sales price, as well as a 4% increase in median rent per month.

Here are a few essential tips to keep in mind about real estate investing:

Location, location, location

Location is definitely one of the key factors to consider when investing in real estate. You have to be sure you’re investing in a property in an excellent location.

One of the most effective strategies is to look for the least desirable home in the most sought-after street. Investing in this property will give you an opportunity to build equity. You can then invest in repairs and renovations to improve the home – if you’re successful, you’ll end up with a move-in ready home in a fantastic location.

Know the tax benefits

The US government encourages private investors. More private investors providing housing means there’s fewer responsibilities for the government to handle. That said, you can expect significant tax benefits from the US if you’re a real estate investor. Find a trustworthy tax advisor who can work with you so you’ll be able to understand all the specifics.

Follow the 1% rule

If you’re going to rent the property out to one or more tenants, one way for you to find out if it’ll be worth the price is by using the 1% rule. This rule basically states that each month, the property must generate 1% of the home’s total price. For example, if the property you plan on buying costs $250,000, it should produce a monthly rental income of $250,000 x 1% = $2,500.

Want more helpful tips about real estate? Check out this page.

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Higgins Group Real EstateChristie's International Real Estate Leverage
EAC Trumbull 550-552 White Plains Road
Trumbull, CT 06611
Phone: 203-259-2172
Fairfield Center 1499 Post Road
Fairfield, CT 06824
203-254-9000
Greenfield Hill 129 Hillside Road
Fairfield, CT 06824
203-259-7868
MILFORD 146 S Broad Street
Milford, CT 06460
203-301-4844
Monroe 97 Main Street
Monroe, CT 06468
203-459-9300
Norwalk 50 Water Street
Norwalk, CT 06854
203-838-5005
Norwalk/Vanderblue 154 East Avenue
Norwalk, CT 06851
203-256-2339
Rowayton/Vanderblue 151 Rowayton Avenue
Norwalk, CT 06853
203-939-7373
Shelton 2 Trap Falls Road Suite 314
Shelton, CT 06484
203-944-9400
Stamford Greenwich Regional 1055 Washington Boulevard
Stamford, CT 06901
203-658-8282
Trumbull 5767 Main Street
Trumbull, CT 06611
203-452-5500
Westport 278 Post Road East
Westport, CT 06880
203-226-0300
Wilton 5 River Road
Wilton, CT 06897
203-762-2020
Stamford East Side Commons 850 East Main Street
Stamford, CT 06902
203-406-0300

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