Investing in real estate could sound both exciting and challenging, and is certainly possible to make good money in the process. However, many investors, both big companies and private buyers, make mistakes that hinder the result’s achievement.
The following 5 tips from Mirage Marketing Department, should help…
1. Arrange Specific Goals
Before buying an investment property you need to focus on your personal investment strategy.
Let’s start asking yourself your personal investment reasons and what kind of goals do you want to achieve. Do you want to buy a distressed asset to renovate and sell for a quick profit? Do you want to hold on onto it for the long-term? Are you investing to build your future wealth or to improve your cash flow? Different answers need different strategies in order to approach in the best possible way your investment.
2. Location, Location, Location
It could sound like a mantra! Location, Location, Location is the number one rule in the real Estate. That phrase has been in use at least since 1926, according to The New York Times, and is just as relevant now as it was then.
Every property is of course attached to the land. It means that identical house can increase or decrease in value due to the location. Generally, the best location are in the prime spots.
Who to understand if the property you are looking for is in a prime spot?
View is certainly a relevant feature. While it will be easier to sell a house or an apartment if they provide a view of the cityscape, or the ocean, or a golf court or a lush garden area.
Also services, schools and a safe neighbourhood are very sought-after.
Families with children, for instance, are concerned about their children’s education and often they will pay more (both in case they are going to buy or to rent) for a home that is located in a highly desirable school district with after-school sport activities and where kids can play and feel safe.
Diversification is the Investor’s key point. This kind of approach allows mainly to reduce short-term capital fluctuations. A well-diversified portfolio increases the chance of gain return of investment (ROI), due to the fact that is hard to predict the future yields of various asset categories.
4. Due Diligence
Before buying a property, we recommend to conduct – or ask to a professional Real Estate Consultant to prepare it on behalf of you – a complete due diligence of the property. This phase is an essential part of the sales and purchase process, necessary to investigate downfalls, defects or any sort of problem the property could have (legal, technical or administrative matters).
5. Use Property Management Companies
In general, property management companies offer the advantage to keep your investment secure and profitable and following the day-to-day tasks. While it is possible to manage your own rental properties by yourself, hiring someone else to do it for you is something to consider, to make it professionally.
Management companies deal directly with leads and tenants, saving you time and worry over marketing your rentals, collecting rent, handling maintenance and repair issues, responding to tenant complaints, and solving problems as well. Plus, a good management company brings its know-how and experience to your property, giving you the peace of mind that comes with knowing your investment is in good hands.
Ask more about our Property Management Services and call us: 00974 4444 4431