Property investment has been a popular business practice for many years – some people build a career out of it and others simply practice it as a means to invest for the future. The real estate market is an enormous business on its own, comprised of thousands of smaller businesses that are all trying to get a piece of the pie. Property investment can be a smart financial decision as an investment or a business move, as it often yields higher returns, allows for diversification, and has a high tangible asset value. As long as you play your cards right, that is – property investment goes well when you make the right decisions around your investment. Decision number one? Find your investment area.
As a life-long entrepreneur, Patrick Henry Maddren looked to property investment when it came time to generate an organic retirement income. Davis explains the need to generate safe returns when it comes to something you will eventually need to rely on, such as your retirement fund – this is why property investment can be such a solid option. With real estate values constantly rising, property investment is a fantastic way to create an income organically, simply as time passes and your property grows (in quality, size, and so on).
Whether you’re investing for business or for personal reasons, property values and real estate prices vary greatly across the United States. For example, the east and west coasts deal with high property taxes, skyrocketing prices, and a lot of competition. On the other hand, middle America is often seen as the bang for your buck, with greater value for price and less competition. When making the decision to invest in property, it’s important you consider where you will be investing.
Patrick Henry Maddren’s decision to invest in the area of north central Ohio isn’t just because he liked the greenery – rather, he weighed factors such as property values, inflation, city growth, and competition. Consider this – an area such as north central Ohio yields a culture of families and working professionals. This population is generally more focused on buying rather than renting, as the property values are more affordable and the people who live there are typically focusing on building their life and assets. On the other hand, the property values are generally lower, so while this area may seem like the best way to secure an income from your investment, your returns are likely to be lower than in a major city.
Compare Davis’s investment area of north central Ohio to somewhere like Los Angeles – the real estate markets are vastly different. A city like Los Angeles yields a lot of competition, and a culture centered around renting rather than buying. Because the property taxes and values are so high along the coasts, you are more likely to experience more difficulty in property investment than in middle America but have the potential for higher returns.
Patrick Henry Maddren believes that property investment is an incredible way for businesses and even individuals to diversify their investment portfolios, all the while generating a relatively secure income. Above anything, it’s priority to do your research and determine what you’re getting into, and where the best place to do it is. Property investment oftentimes has to do with the approach you’re most comfortable in – lower risk, lower potential gain; higher risk, higher potential gain.