7+1 small secrets for women investing in Real Estate

Once a woman decides to deal seriously with investments, her results can be impressive. The same stands for the Real Estate sector too. Even if she is not an expert of this field, having few simple and clear secrets in mind, she can surpass many “I know all” male investors.

Location, location, location
Whatever one might tell you, no matter what “beauty” you might find in something “hidden”, the location of a property is always very important. It makes the difference and sometimes it worths a bit higher price too.

Any investment should have a specific time schedule
The approach of “I buy today and we will see what the future brings us”, or “I buy something for my children” is similar to “I burry my money on a property and I will unbury them in 20 years”. Set a realistic target and set a strict time schedule for its implementation (3 – 5 years are sufficient).

“I need” does not match with “I want”. “I can afford” matches with both
One of the major mistakes that end users committed during 2006 – 2008 was the fact that they bought apartments or villas following their instinct. They were choosing based on what “they wanted”, not what “they needed”. Also they had not taken into consideration their ability to afford an investment. You are all aware of what happened afterwards…

A property that does not produce money, costs
Every investment of ours should produce something. Is it a steady income? An expected upscale in price (visible and justified)? Or maybe the solution for a need of ours? If the answer to all the above is negative, keep in mind that your property will cost you lots of money. Taxes, maintenance etc. So before you buy something, think it over again. Does your choice give you more benefits than the annual costs that it will create?

Income property: Minimum yield 6%
If you invest 200.000 Euro for an income property, you should target for minimum “net” revenues of 12.000 Euro per annum. This should be the income of yours after all costs and taxes paid, in order to worth the investment. An even higher yield is “achievable” as well.

PS. When could we accept a lower yield? Either when our investment is small and it does not have the necessary size in order to produce much, or when the property is top (location, quality etc), that we consider that it worths a higher price.

Once we spot a bargain, we buy it. We don’t wait for the next one
If you really find something good, matching the right location, good quality and the price you want, then move on and invest in the property. It is quite rare to match these three specifics. And usually most people earned profits by matching these three, not by buying something for 1% of its price.

It is still a buyers’ market
You may listen to many stories, but the reality is one: Romanian Real Estate world of 2011 is still a “buyers’ market”. You may find many arrogant people who will try to convince you that you should accept an expensive property (being sold by bad attitude too). You don’t have to accept this. If you have money to invest nowadays, you have an advantage. It is in your hand to use it.

Carefully count all the expenses
The real cost of an investment is:

• The price that the owner will receive
• All taxes paid
• Legal fees
• Real Estate consultant’s fees
• Any other fees
• (I charge “0” for your time, but this is also a real cost, as you know very well yourself too).
• Then a renovation budget might be necessary etc.

If you take into consideration just the owner’s receivables, you will probably end up with a big surprise. A surprise you can easily avoid.
There are many people who consider women as “unable to invest with success”. I know plenty of them who can prove to you that they are better than most men…