Get it right, and real estate can make you for life. Unfortunately, getting up and running with investments of this ilk can be easier said than done. There are a whole host of hurdles to navigate and to top it all off, there are all sorts of myths dominating the market as well.
This is something that Allen R Hartman has found during his distinguished career in the Houston area. He kept the faith during the tough periods and has always said that real estate offers the best proposition in comparison to other types of investments.
Bearing this in mind, he knows all about the misconceptions that surround it and to provide something of a photo of the situation, let’s take a look at some of the biggest myths in-detail.
“You need a significant fund to start with”
This is probably the main myth that dominates real estate investments, particularly in an area as affluent as Houston. However, if you are shrewd about your investments, this really doesn’t have to be true.
While most investments now need at least a little money up front, this really is a “little” and is very much affordable to the majority of people in the country. A lot of the time it’s picking the right opportunity, and not the first one that happens to fall into your inbox.
“You will struggle to raise the rents of your properties”
While it’s true that this myth can be true in some regions of the country, if we turn to Houston this is generally not the case. Let’s not forget that this is a city which is home to some very highly paid individuals. It’s a city which has the oil and gas industry, as well as the biggest medical center in the whole of the state. This means that it regularly attracts workers – and very well paid ones.
Ultimately, you don’t tend to lose tenants when you decide to increase the rent of a property. Sure, these raises should be gradual, but if they fall into this category most tenants find it much easier to stay put and simply succumb to the small rise. After all, it’s a lot of hassle to move properties and in truth, it will probably cost them more as well.
“You have to do all of the DIY jobs”
This is a surprisingly common myth but suffice to say, it doesn’t have an ounce of truth in it. Sure, some landlords might decide to do this, but on the most part a lot will handle all maintenance tasks to a real estate management company. This can mean that a small percentage of the rent tends to be given away, but many see this as completely worthwhile considering the complete lack of hassle that this solution promotes. Usually, this can be a much more cost effective solution as well, with management companies having very good contacts that are able to resolve such issues more efficiently.
