How to Get Started on Real Estate Investing – A Guide to Help You Get Started

 Keeping your money in the bank simply isn't enough in today's world. With prices of everyday things often increasing at a rate that doesn't keep pace with what you earn, and savings account interest rates not always being that great, every money-conscious individual should be looking at parking some of their cash in investments that are likely to make them a good return or at least help diversify their risks. Real estate investing is a popular option for many – here's how you can get started!

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Understand What Real Estate Investing Means

Investing in real estate can often sound like a daunting term for newbies. It doesn't always mean that you need to be a pro at knowing the housing markets or how to flip numerous houses for massive profits. Real estate investing also includes things like learning how to make the right choice when it comes to your own house and learning how to turn it into rental income over time. So depending on the state of your finances and how much resources in terms of both money and time that you can afford to set aside for your investment in real estate, choose a strategy that works for you. The hardest thing to do is to take the first step, so pick an option that seems the easiest and most feasible given your current circumstances and kick-off with that.

Where to Get the Tips and Information You Need

Self-help and DIY are big these days, and it seems like the first real help anyone can give you is to point you in the right direction of resources that will help you help yourself! So in addition to this article (which will help you get started on your real estate investing journey), make sure that you check out other sources of useful information. There are online blogs and magazines such as Lifestyle Guide Online and several similar others that offer helpful tidbits on real estate investing as well as investment opportunities in Sri Lanka. You can get right down to the details from sources like these. Keep an eye out for land and property listings in newspapers (physical or online) and on websites that are specialised in real estate listings in Sri Lanka.

A Great Strategy for Newbies

If you're just starting out and don't have much in the way of extra disposable income, here's a great kick-starter strategy that you may be able to pull off after a short while of careful planning and saving. Consider what people call 'House Hacking'. Essentially, this means that you purchase a relatively low-cost duplex, triplex or similar, in which to live, and then rent out the units that you are not occupying. This would also work if you purchase an apartment with many rooms, and then choose to rent out all the rooms except your own or if you decide to buy a small house, and did the same with the spare rooms (in the case of a house, you could even consider turning spaces around the house such as basements, attics etc. into additional rooms that would become rentable). The great thing about this is that you don't have to have a lot of additional cash lying around for investment purposes. You just need to be smart about saving up for your basic need of owning a house or apartment for yourself and then be thrifty in terms of renting it out while you live there to make some extra cash.

Oftentimes, people don't have the cash to just purchase their first house, apartment or duplex outright, and have to settle for a mortgage instead, which they can pay off over time. However, the good thing about house hacking is that if you play your cards right, the rental income that you earn on renting out your extra rooms could end up covering your monthly mortgage payments! This means that your house is essentially paying for itself. To make this achievable, just make sure that you maintain a good credit score so that you can bag a low-interest rate on your mortgage.