Is real estate really the most privileged way for higher returns?



If you’re someone looking for a secure and low-risk type of investment with potential in the long-run, the best thing that you can do is invest in real estate. As opposite to other forms of investment, real estate is not that volatile. Contrary to popular belief, property investment has helped lots of people make a fortune in a very short timeframe. However, you shouldn’t treat is as a short-term form of investment because you risk losing money rather than winning. 

Generally speaking, long-term real estate investments span over the course of 5+ years. These are carefully pre-planned and they feature crystal-clear objectives. Buying house of property at an affordable price with the goal to sell it after restoring it, is an excellent form of investing in real estate. However, you have to take things one step at the time, and really know what you’re doing for your initial investment to pay off. 

Tips for achieving good returns investing in real estate 

A property is considered an investment when it start offering a capital appreciation of 10% per year (at a minimum). This means that investing in real estate with the purpose to get sizable returns needs to focus on a fundamental factor – location. Your ROI (return on investment) is directly proportionate to your property’s location. Some things to consider: 
Promising locations – it’s best to focus on investing in a location with potential to grow, not in an already popular area. If you want to buy in an area that’s already well-known, you may have to compromise and settle for a smaller-sized property. You may not be able to afford to buy a bigger property, because it may be well over your budget. 
General amenities for added value – it’s best to invest in properties that have general amenities nearby. In time, this will increase its value; everyone wants to live in a house with parks and playgrounds nearby, supermarkets, schools, and more. In case your preferred property doesn’t have such facilities, check with the government officials to see if there’s an expansion plan pending for the next years. 
Easy access to public transport –before even considering to buy a property for investment, you have to make sure that the area is well-connected to the public transportation system. Keep in mind that your buyers or renters will want to travel for daily needs; not everyone owns a car. 
Easy access to school and hospitals – families, in particular, look to buy houses in areas with schools and hospitals nearby. They want to feel safe, and at the same time, they want to make sure that their kids are well-taken care of.


Reasonable cash-on-cash returns 

Buying property means that you’re taking money from a tangible financial asset – stocks or bonds – and then investing that money into an illiquid asset – property. With financial assets, your return on investment is roughly 5%. With real estate, you can make more provided that you can spend some time getting to know more about the industry, and really mastering its core strengths. It’s very important that you focus on properties that are cash-flow positive. These will render decent returns, and not those types of properties that only look good on the outside.

Sensible time management 

There are properties that demand too much of your time, and no matter how hard you try, you just can’t turn them into smart investments. The best examples are low quality properties in sketchy areas, vacation rentals, college rentals, and more. The least risky properties that those that you rent to tenants with a decent credit profile. But to make the most of your investment, you have to treat your tenants right. Show them respect and keep a good relationship with them.  
 
Real estate is one of the most privileged and profitable forms of investment because even if you fail, you still have a tangible property that you can either sell or rent later on. However, before doing anything you have to research, work really hard, read a lot, and eventually make reasonable, educated decisions in order make the most of your initial investment. Sure, kalkan villas for sale may seem extremely tempting, but then again you can’t really play with money, especially if you don’t have enough. 


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