Much of the advice available regarding real estate investment focuses on entering the world of property investment for the first time. It’s all about finding the right property, learning how to calculate your rental yield, and ensuring you get a good deal. That’s all valuable information, but what if you’ve already made the first jump, own an investment property, and are now wondering what happens next?
If you find yourself in the above scenario, then you may find this post useful. There are a number of options to consider when it comes to your next investment step-- we’ll discuss these below, so you can make the best-informed decision possible…
Option #1 - Buy a second property
This is the best option if you want to continue investing in property for your own future -- for example, to supplement your retirement -- or are considering a career change into full-time property development. If you have been there and gone through the process of buying an investment property, buying a second should be relatively straightforward.
Many people find that funds are tight after their first investment property purchase, so it makes sense to explore options for lower-cost homes for your second endeavor. One option is to find foreclosures and bank-owned real estate deals that may offer the opportunity for a bargain, or opt for a smaller property, such as an apartment, than you did with your first investment.
Option #2 - Do nothing
The above is a viable option. After all, you’ve gone through the process of making an investment in your future, so why not sit back and relax for awhile? The management of an investment property can be time-consuming, especially if you struggle to find tenants, so this alone may be enough to dominate your time.
If you do decide to wait for awhile before making another move regarding your investment, you should still keep an eye out for news about the housing market. If prices suddenly rise, you will want to know about it, so you can consider selling your investment property for a good profit.
Option #3 - Diversify your investments
Real estate investment is generally considered to be one of the best forms of investment there is, but it’s far from the only option. Any financial advisor will tell you that the soundest investment strategy is one that is fully diversified, so you may want to explore other options for future investments if you don’t want to continue to invest in property.
Stocks, shares, peer-to-peer lending, and conventional savings accounts are all good investment options that you may want to consider. If you’re going to be relying on investments to ensure a comfortable retirement, then ensuring you have a variety of different investment types is always going to be the best choice.
Now that you have taken the leap and invested in your first property, you can decide on your next steps in regards to safeguarding your financial future. Explore the options above and then choose which suits you, and your future plans, the most.