Those who decided to invest in the Memphis real estate market in the past few years are probably feeling pretty good about that decision right now. So here are some 2018 New Year’s resolutions to think about as a real estate investor.
I will think outside the box
I see it time and time again – investors looking to purchase in the area they grew up in, or one they are familiar with. In doing so, they may potentially be overlooking other areas with much higher growth potential in favor of the comfort of familiarity.
This is a mistake I was guilty of making in my earlier years as a property investor. I bought in a town I had lived in for a long time, rather than relying on performance indicators or other such metrics to guide my purchasing decision. This may have resulted in a sub-optimal investment decision.
Investors who follow the herd and rush to purchase in the more predictable investor locations can often be guilty of overlooking other possibilities. The lesson learnt this year with the increased activity in rural and regional locations, not traditionally considered typical investor markets, was that it can pay off to consider all possibilities.
I will be ready to act
I witnessed many prospective home owners sitting on the fence throughout the years, undecided as to whether it was a good time to enter the market. Some of these people are sure to be feeling disappointed now, after witnessing the capital gains realized by many others.
The naysayers of doom and gloom will always be out there, warning of property market crashes or plummeting property prices. But those who followed the advice of these negative commentators last year are likely regretting doing so. Buying a property can be a big decision, and no one should ever rush to purchase without thinking through their options. But remember, indecision may keep you from what could potentially be a rewarding investment decision.
Once you are mentally prepared to act, it’s just as important to be financially prepared. This includes having considered your budget and price range in great detail and seeking pre-approval from your finance provider. That way you will be ready to take advantage of any opportunities which come your way, and avoid the regret of what could have been.
I will get real about my budget
Sometimes budgeting can slip off the radar. With the current extended period of historically low interest rates, it can be easy to get comfortable in thinking that extra bit of cash will always be around.
However, there are few guarantees in life and it can never hurt to have a bit of money saved up on the side. One way to better understand your true expenditure is to track your spending for one month. By committing to recording every expense for an extended period, you’re sure to uncover any mindless or wasteful spending you may have otherwise been unaware of. This will help you create a budget that is accurate, achievable and useful, as well as assisting you to drop bad spending habits along the way.
I will enjoy the ride
Finally, none of us really know what 2018 will bring. We can’t actually say for sure whether interest rates will rise, fall or stay the same. Nor can we predict with complete certainty the locations or property types which will provide the greatest capital gains or the highest rental yields. My main resolution as a real estate investor is to simply be ready for whatever comes along in 2018. Enjoy the ride that is real estate investment. Adaptability and flexibility, with mental and financial readiness to purchase, will be key in the real estate market heading into the New Year.
From all of us here at BuyMemphisNow, we wish you all a happy 2018. Here’s to a prosperous and fulfilling new year.