It seems that every industry has their share of myths, and property investing has plenty of them. Unfortunately, far too many take on a life of their own and ultimately get misconstrued as being taken as truth. For a first-time property investor, this can turn risky if they go by third-hand information that isn't accurate.
Just as much, too many myths can discourage new investors from wanting to invest in turnkey properties. Many of the myths you see about property investing come in the category of finances and giving impressions of an exclusive business.
It goes beyond this, including common myths from those who've never actually been in the real estate industry. If you're hearing too many second and third-hand stories from individuals who claim property investing is too risky and too prone to failure, don't take any of this as fact.
It's time you started busting the myths of investing in turnkey properties so you can see the realities and prepare for a positive opportunity.
Myth: Property Investing is Only for Rich People
There isn't any worst myth than creating an assumption only wealthy people can invest in property. In many cases, seeking investment partners can help you get yourself started with just one property. Plus, you have various home loan options. After gaining profits from one property, you'll start to snowball your investments and soon gain an outstanding portfolio.
Using property investments for your retirement is the smartest thing you can do without worrying about stock market fluctuations. While the real estate market can fluctuate as well, it's not nearly as dramatic. Through a turnkey property plan, you can gain passive income in the future with initial substantial capital.
Myth: You Need to Buy Property Locally
Many property investment analysts say this myth permeates much too often, only out of a sense of security. In truth, investing in property can become a global process as long as you do your homework on the best markets.
This works especially well in turnkey property investing, especially here in Northeast Ohio. But investing in turnkey properties around the nation can work great if you just want to invest for passive income. If you're living out-of-state and don't have time for daily maintenance on your properties, a turnkey option helps you with the locality issue.
Even so, multi-family apartments are additional good investments on a non-local basis because you'll frequently have on-site management teams working for you.
Myth: Property Investing is Too Competitive
While it's true that property investing is a competitive business, properties are diverse to a point where there's enough to go around. Don't give up investing just because you've believed the myth about real estate being too competitive.
With proper knowledge, guidance, and research, you'll find great property investment opportunities. Finding hot markets is essential because it's there where you'll find many surprises. In Northeast Ohio, we have a dynamic investor base available to provide guidance with years of experience.
Myth: You Can Get Rich Quick
You really have to look at property investing as a long-term process, even though you can start to see returns quickly in some circumstances. In the case of multi-family apartments, you could start to see healthy returns within months, despite costing more in the initial purchase.
Single-family home buying generates passive income for the future. Turnkey properties are one of the best methods for this without having burdens of doing daily management tasks.
Just like stock market investing, property investing needs the same future outlook in returns. As you grow your investment portfolio, you'll have a solid nest egg during retirement thanks to your patience and knowledge.
Smartland is Northeast Ohio's largest real estate investment firm. Our team combines financial savvy with expertise in property management to help clients identify and invest in alternative investment vehicles that have strong growth potential.