Are you planning on investing in the real estate market?
Check these tips to make your investment a success!
2016 winks at the real estate market and its investors, with important signs of improvement. Prices stabilize and banks seem to open the tap, making investment a very attractive option, not only for large funds but also for the small and medium investors.
However, be careful, an investment is a big responsibility and for that very reason, it should be studied in great detail. And what better way than following these 10 tips to make it a success:
10 tips to invest in the real estate market:
- Don’t be emotional, but rational. It´s important that you take your time to analyze and check all the factors related to the investment. Emotions can make us forget essential things.
- Analyze the rent and sale expectations in the area. Make sure that the property offers possibilities of future profitability. Consider the price, and compare the characteristics of your choice with other areas. This will help you get an idea of what you should and should not accept.
- Choose a good location. This step is fundamental since in many occasions the price or attractiveness of a property is based on its situation. A current and fresh area with the necessary services nearby (public transport, schools, shops …) is the way to a safe investment.
- Beware of reforms, don’t let these escape your budget. At first glance, fixing a little here and there doesn´t seem a problem but be careful,it can get out of hand. Analyze the reform you need and calculate what it will cost you.
If your gaze is set on an old building, this advice is directly for you. They often need major reforms.
- If you are going to ask for a loan, consult with the banks first. As an investor, you are in a good position. With the low interest rates banks can offer very interesting conditions. The more you consult the better!
- Residential housing above commercial. Generally,residential properties tend to be more profitable than offices, although in areas with large populations the second option becomes more attractive.
- Yes to areas near university centers. These areas, in continuous increase and development, are usually a safe bet, especially if you are thinking on renting.
- Avoid neighborhoods with shooting community expenses. These expenses represent a negative point for housing since many people, when buying or renting, are not willing to assume these costs.
- Control maintenance costs. Buying to invest is not said and done and while the property is yours these expenses will run from your account. Make sure the property is in good condition
- Seek advice. Not all investors are experts and there is nothing wrong in asking for a little help. A professional knows and controls the options and can guide you in the most profitable way
Here are 10 tips to invest successfully. Now, we are just missing you!!