The Benefits of Real Estate Investment Groups to a Beginner Investor

In discussing Real Estate Investment Groups, it could be true that you have a good knowledge of investing in this sector but the fact remains that what you know could be just a scratch of the surface of this thriving market. Well, as a beginner investor, it would interest you to know that as long as there is great potential in the real estate market, there are no hundred percent assurances that you can successfully make it. However, to be on the safer side, the more you know about means of cutting down on the risks of this type of investment market, the better for you.

This is where Real Estate Investment Groups come in. Since it is more beneficial to weigh the advantages and disadvantages of given investments and make good choices instead of making avoidable mistakes and counting your losses, it is therefore advised that you rely on this option to succeed in this venture, especially as a beginner. Now this body is simply likened to small mutual funds. It works perfectly for a beginner real estate investor who does not wish to go through the hassles associated with being a landlord.

How does Real Estate Investment Groups help you out? They do this by building sets of condos or apartment blocks which are then sold to interested investors which automatically make them part of the group. If you wish to own a single unit of self-contained living space or multiple units, it is all up to you and since the company at the helm of affairs of the investment group is saddled with the management of the units which includes maintenance, tenants interview, adverts of vacant spaces and lots more, you can go for multiple units in order to maximize your profits even as a beginner investor.

Now you are beginning to wonder if all this help from the Real Estate Investment Groups is for free. It is absolutely not free. What then is in it for them? The group gets compensated for its management services by collecting an agreed percentage from the total monthly rent accrued from the number of units you own. It is that simple. It would however, interest you to know that these investment groups come in varied versions and quality. What this means for you as a beginner real estate investor is that, if you wish to make the most of your efforts initially, proper research should be carried out prior to making a choice of an investment group. Yes, research is the watchword.

Should I Buy a New Build or an Older House?

I often get asked the question, "should I buy a new or older property"? Well here are some thoughts to consider.

Here's an example from Ken who was considering buying a house in Bromsgrove, West Midlands...

There was a £20,000 difference between the price of a new modern 4 bed detached house and a 10 year old house.

5 years from now the new house will be 5 years old and a 10-year old house will be 15 years old. The question was would this difference still remain, or will the older house catch up? New houses are like new cars, they lose value as soon as they become second hand!

What you will find, is that property is like fashion, it comes in and out of style.

A 15-year old house will be competing with the new houses of the day. Over 15 years house specifications improve. A four bedroom house which was built 15 years ago might not have a down stairs cloakroom for example. The new one will. Hence the new one is more desirable and is valued higher.

So my advice to anyone with this dilemma, is go for the property which suits your situation the best.

An older property might have more 'potential', but if you don't have the time to add the potential - there's no point in buying it.

Older houses usually have more land with them, which can be a good thing if you want to extend, add a sun room or landscape the gardens.

It can also very much depend on your lifestyle, commitments, and family circumstances.

When you have young children you may need a property that is 'already done', with such specifications as en-suite bathroom to the master bedroom.

You may be both working full time and don't want to have to work on the house. In this case a newly built house is for you.

If you have the time and/or money to do up an older property, it certainly can pay dividends, especially if you add on the features that everyone wants.

These days things like: downstairs cloakroom, utility room, en-suite bathroom, summer room and home office are all worthy additions to an older house that did not have these as original features. The house next door will always get a better price if it has these features over one that does not.

Remember, a house will have a maximum price in any area at any one time, so don't overdo the modifications. If it can be done in keeping with the style of the original building, you can buy low, invest wisely and make money.