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Big thanks to S&S reader, Sam, for contributing this post! If you’re considering real estate investments, make sure you’re asking yourself these questions.

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Real (Estate) Talk: Questions You Should Ask Before Investing In Property

Real estate investment has been shown to be the most reliable and stable form of investment time and time again. Even with the market collapse in 2009, real estate investments have paid off big over the past 30 years.

Before jumping in at the deep end, though, you must equip yourself with a plan of action. Use the following questions to guide your plan.

Home Or Abroad?

When analyzing the five-year period, property prices are moving in the right direction in pretty much all locations. Nonetheless, some markets are better than others. Choosing the right one will go a long way to ensuring that your investments work as hard as they possibly can.

If you’re already a homeowner, you’ll have a pretty good idea of how to buy a property in the local area. However, knowing how to invest in foreign real estate is another challenge altogether. While it can be exceptionally rewarding, you must be aware of the dangers and scams. Otherwise, you may inadvertently set yourself up for a fall.

What To Buy?

Buying a property for commercial endeavors is different from purchasing a home. Commercial properties are typically more expensive, but may also provide higher returns.

If you’re investing in residential real estate, you might plan to flip houses by purchasing fixer-uppers and reselling once the renovations are complete. Or maybe you’re going to buy ready-to-move-in homes for long-term rentals.

Alternatively, you may want to invest in a multi-property complex. It will take a bigger upfront investment, but the risks are potentially fewer. More units mean more income, and you may only need to fill some of the units to break even.

Knowing what you want to achieve with your investment will help you decide where to find the perfect property too.

Active Or Passive Management?

Property investment could be your main source of income and your full-time job. Or it could be a side hustle.

The support of a residential real estate agency allows you to take a backseat role in the day-to-day management of your real estate investments. Allowing a property manager to use their expertise to unlock the full potential of your investment can work wonders.

Alone Or In Partnership?

Support from agencies isn’t the only available help. You may find that joining forces with a  private investor is a great way to increase your capital. It may allow you to grow a bigger portfolio in a shorter period of time. Then again, it will naturally mean that any profits need to be shared.

There are lots of ways to invest in real estate. Just take your time thinking things through before leaping. Asking yourself these questions before making your move will set you up for success!