Your savings are deposited in the bank at an interest rate of around 0.1%. This is obviously very unfortunate. The days of earning 5% interest on your savings are over. And this situation is likely to be around for a while. Real estate investment may be an excellent opportunity to overcome the savings impasse. The following tips from experienced investors could provide a chance to get out from under the nasty zeroes in terms of returns on savings.

1) Investing Means Planning

Make sure you plan when and how you will invest your money. Investing is also about planning. Sometimes it seems that successful investors in commercial real estate are simply lucky, but this is not the case. Successful investment depends largely on planning. The better you plan your investment; the higher your return will be.

2) Investment in Growth Projects

Investing in projects in areas that have not yet been developed is advantageous because they can significantly increase in value in the future. Therefore, investing in buildings in areas that need further development is always better than investing in fully developed facilities. Instead of looking for a specific project or building, look at what is for sale. In other words, keep your eyes and ears open for great opportunities.

3) Be Confident in Your Choice

Have you chosen to invest? Then you must be sure that the investment really meets your wants and needs. Therefore, it is essential not to choose a larger or smaller project than planned, not to invest in an unknown or unpopular area, and not to accept a questionable building.

4) Invest in Patience

You may have waited too long for bank interest rates to rise before deciding to invest. Or perhaps, you may have already experienced investing in private real estate and want to broaden your horizons by investing in other real estate. Then, investing with patience is a good thing. Because know that investing in commercial real estate is very different and it can take time to get a return on your investment.

5) Seek Professional Advice

Real estate investing sounds easy, but it takes some time. If you don’t want to lose your savings, consulting an expert can be very helpful. Experts can guide you through the pitfalls of the market. So, don’t hesitate to seek advice from real estate investors who know the tricks of the trade.

6) Check the Tax and Legal Position

Investing in real estate has implications for tax and legal positioning. Rental income may be taxed in different ways, and this depends on the amount of tax you pay. Other questions you can ask yourself are:

• How is rental income taxed?
• Which expenses can I deduct from my tax bill?
• Am I buying the property alone or with two other people?
• Am I buying individually or through a corporation that I am forming?
• What happens if I am married?
• What happens to my property if I die?

7) Shop Close to Home

This advice should be understood both literally and figuratively. You know your own environment and its developments best. The closer you are to the property, the better idea you will have about its location and security for the future. It is easier to visit the property to monitor it and to contact the tenants. Besides, experience has shown that investors who live near a property have fewer vacancies and lower operating and maintenance costs.

8) Start Small

Do not buy an apartment complex with 30 flats right away. Start small. Give yourself time to discover the market. Learn from your mistakes and never put “all your eggs in one basket”.
Consider when to buy and sell: have an expert evaluate the property in advance.
People who come after you are looking for the same thing as you are: profit. In other words, they will only buy if they see potential in your property. Therefore, when buying, look through the prospective buyer’s eyes.

Do you have any other tips? Share it with us in the comments below!