Tips for Successful Real Estate Investment

Tips for Successful Real Estate Investment

Did you know that real estate is one of the few investment options that is not normally devalued over time? Normally since land is a finite good, it is not possible to increase the supply of real estate in an infinite way, in addition to the restrictions of the regulatory plan per commune, we must pay attention to advice to undertake before daring to invest and seek to maximize the results.

Investigate The Area

Another tip to start with real estate investments goes hand in hand with the sector where you want to invest. In this sense, generally the more consolidated the area where you want to invest, the lower the returns that can be obtained given that the risk premium is low. Otherwise areas in full development usually have higher market capitalization.

Make The Budget

Before investing in the real estate, you need to establish a budget for your investment. It is very important to know how much monthly flow you can have in order to be able to fulfill the monthly commitment to get your mortgage loan if you are opting for this options. Also, consider the operational expenses, costs of quarterly contributions, maintenance and eventual taxes.

Find A Good Property Dealer

If you are looking to spend the minimum amount of time on your investment, you should find a good property dealer, so that he can worry about managing the property with the minimum risk of non-payment possible and managing all possible after-sales problems that normally happen in the newly delivered properties, among others.

Compare The Pure Return On Assets Versus The Cost Of Credit

To seek to improve the profitability of your money, you must evaluate what is the pure return versus the cost of interest of your bank if you are evaluating to carry out a mortgage loan operation.

The pure return is measured as the lease value for 12 months, divided by the purchase value of the property. To this income stream, you must deduct payment contributions, projected vacancy rates among others. And in general all the items that can deduct revenues from this calculation of profitability, so that finally you can obtain the adjusted pure return.

Where Do I Invest?

Well, to help you in this regard, we would suggest you to go for Dubai Creek Harbour where the unimaginable profits are waiting for you.

  • Ask your real estate agent to recommend the best options to take out a mortgage.
  • To apply for a credit to buy a real estate property and pay the credit with rental income is not a bad idea, only if the corresponding financial analyses are done, the rates of the returns are calculated and you choose the right credit plan.
  • You have to make sure that the price you are paying is attractive enough and, if possible, below the market to invest.
  • The best opportunities are not in the media, so consult with banking institutions that have repossessed properties, portfolio managers and, of course, the realtors.
  • You have to investigate that the property is free of all types of encumbrances.
  • You also make sure that the location is appropriate to the market in which you plan to rent, and obviously you must choose the best place.
  • You can ask for the independent valuation, as it is an investment that is worth to pay. There may be costly flaws that only a professional can observe, and this will surely serve you to negotiate on the lower purchase price of the property.
  • Invest in a good lawyer specialized in the real estate, independent of the real estate agent of your preference. You must assess everything yourself before signing the contract, and always remember that your real estate agent is interested in closing the deal.
  • Do not be intimidated when you are making a counter offer, as you never know how interested the seller is in closing the deal as quickly as possible.
  • You should contact with a real estate agency with good reputation, finally you are the customer and the customer is always right.
  • Purchase only and exclusively if it is a safe business, and if you do not see the utility in the purchase, you just do not close the deal.
  • Try to find the property with the least possible intermediaries or buyers, since the gain of each is an additional cost for the last customer and that is you in the case of making investment in the real estate.
  • An excellent option is to buy properties with bank financing, so that you can pay the bank and still get an extra profit after all the administrative expenses.

Our Suggestion for Investment

One of the best opportunities to make the investment in real estate sector we can suggest is Dubai Creek Harbour projects.


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