All You Need to Know About Real Estate Investments

12 October 2019
 Categories: Real Estate, Blog

Would you want to invest in real estate? Real estate is considered one of the most profitable businesses in the world. Read the extract below for some few tips. 

You Do Not Need Millions

The truth is that you do not need millions of dollars to invest in real estate. For example, you could purchase shares in a real estate investment fund (REITS) or a listed real estate company. Conduct some due diligence before buying the shares. For instance, what is the minimum amount of shares you can purchase? Research on the company's financial strength. Check the number of dividends it remitted to shareholders, the type of properties they company has invested in and the experience of the company's top leadership.

Market Research

Always conduct some market research before purchasing land or property. Some of your considerations should include:

  1. The property you intend to buy should be conveniently located. For instance, it should be close to major roads, shopping malls, schools or hospitals.
  2. What the current appreciation rate of property in the area?
  3. What is the current demand for land and property? Check the number of units sold in the past year.
  4. Check the area's zoning regulations. These will significantly impact the type and size of property you will build.
  5. Inquire about local council laws if you intend to subdivide the property. For instance, what is the minimum plot size? What amenities should each plot have? 

Work With the Experts

Working with real estate experts will significantly ease the property buying process. For example, a property lawyer will conduct due diligence to ensure the property is registered under the owner's name and that it is not under any disputes. Besides, he or she will evaluate the contract of sale to make sure your interests are well-protected. If you intend to take a loan to purchase the property, a mortgage broker will help negotiate interest rates and repayment terms.

Management and Selling

If you intend to sell the property at a later date, it would be advisable to conduct some return-on-investment renovations to improve the appeal and value of the property. For instance, you could repaint the house or conduct some roofing, flooring or landscape improvements. 

If you intend to lease or rent out the property, hire a property manager to advertise the property, create lease and rent agreements, conduct minor renovations and handle the complaints of your clients. 

Making a real estate investment should not be difficult with the above tips. Always conduct some research before investing. Besides, hire industry experts to help you purchase, sell and manage your property.

Learn more about real estate investing from a company such as National Property Insights.