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Real Estate is Where the Real Money Lies

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By : Eshkarvin Kenezer    99 or more times read
Whenever the word investment is mentioned, real estate is one of the first investment opportunities that comes to mind. Many see it as a safe haven for investing as the value of real estate generally rises with time. To top it off, a real estate investment can provide a consistent income in the form of rentals.

First of all, investing in real estate is an effective way to diversify your investment portfolio. In today’s volatile market, stocks, bonds and mutual funds are no longer regarded a safe haven when we look at the 97’ Asian financial crisis, or more recently the crises that are hitting bourses of various European and Western countries across the globe. Therefore, the prudent investor will always invest in real estate as a part of his fixed-income investments.

However, there is more to real estate investment than the initial purchase of the property. On the other hand, other factors such as ownership and management costs of the property should be included in the consideration. Profits can be harvested from a real estate investment either through capital appreciation of the property, which is commonly known as flipping or by renting the property out and having the rental returns as a consistent source of income. Investing in real estate is no different from other types of investments, and it takes sound judgment on the investor's part to be able identify properties with great potential of generating profits within a few years.

The easiest way to achieve this is to practice the 3 basic rules of investing in real estate: searching, asking and negotiating. Practice makes perfect and upon perfection of these 3 skills, you would be well equipped to close your first deal. First of all, before embarking on a search for property, you have to determine your goals in this investment. Ask yourself questions to determine whether the main purpose of investing is to collect rental returns or to sell the unit for profits in a few years.

These determining factors can help decide the final choice of location. For example, if you are looking at renting out the properties, a property located near a college or university would be a better choice. On the other hand, if appreciation is your goal, a freehold property would have better capital appreciation a few years down the road. Also, to minimize your capital investment, it would be best to purchase properties directly from the owner. By doing this, acquisition costs such as commission of the agent can be avoided, and it will also be easier to negotiate with the owner to reduce the final price of the property.

When it comes to selection of location, the first step would be to perform a survey of the entire development and surrounding areas. Prepare a checklist to ensure that the area is served by ample amenities nearby. Things such as hospitals, recreational centres, malls, schools and other useful amenities are able to boost the property’s value. It would also be useful to note the availability of public transportation in the vicinity.

Finally, speak to the locals who would have first hand information regarding the area. Any plans for immediate development could be taken into consideration as well. You should always remember that investment in real estate requires a fusion of both hard work and some luck, but once the right factors are taken into account, it is a rewarding journey and clean profits will be coming your way.
Eshkarvin Kenezer is an avid property investor. He executes highly strategic investment moves by buying at the right time and location and then selling to the right buyer. He owns multiple property websites such as Casa Tropicana Condominium, which is a kind of niche portal for buying and selling specific property projects.

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