Practical Tips for Investing in Real Estate

An expert’s opinion for those who want to invest in the real estate market this year could be a really worthy take this step. A small premise, before entering...
Real Estate Investment

An expert’s opinion for those who want to invest in the real estate market this year could be a really worthy take this step. A small premise, before entering into the heart of the subject: in this article, we will talk about investments in the real estate market. This is a guide for you if you want to buy an apartment, a garage or a property to rent or sell it when there are favorable conditions in the market. Buying a property to allocate it for your personal use is not considered to be real estate investing in real estate.

The “brick” as the real estate market was called fifty years ago, is a market like any other. In finance, there is never a 100% safe investment. Each market has its own peculiarities, so the real estate market does not escape these logics. Investing in bricks can be useful and can offer interesting perspectives, but it is good that you first inform yourself before taking this step.

Do not limit yourself to looking at stock prices, but if you plan to buy an apartment or a box or another property, take a trip around the area. Consult the prices displayed outside the various real estate agencies in the district and compare them: often, even within the same city, prices change significantly from district to district. This happens because the costs of a real estate property are closely linked to the area in which it stands: if it is in the suburbs it will cost less than an exactly identical property but located in the city center. Furthermore, prices are also dependent on so-called connected services.

The investment choices that you have

The first and safest choice that you have, in terms of acquisition of real estate, is to buy a small square footage apartment – a studio or one-bedroom apartment, in short – to be placed in a central area, well served by public means i.e. that has at least one connected parking space, if not a garage.

A small apartment is much more easily rentable than a large one. Leasing an apartment to a family is very risky: you can go to cases of insolvency, and if there are children in the family, submit an injunction to eviction not only can be very complicated but you may not even be able to free your apartment. And so you would find yourself in the unpleasant situation of not being able to dispose of your personal assets and having to deal with insolvent tenants: they are two big problems, as you can imagine.

Instead, a studio or a two-room apartment can be rented to a professional who has moved to the city for work reasons. A person who does not have a dependent family but has a solid salary behind him is a guarantee of solvency and also, if the apartment you need or decide that it is time to resell it, you would have no difficulty in freeing it within the established time frame. If the studio can even match a parking space – even if, the box is the best solution- the added value of your property grows, especially if it is located in an area where parking can be a problem: with a greater added value, you can ask for a slightly larger rent. But you are still careful not to propose a fee outside of the logic of the market. You would risk never having a tenant, and therefore you would not even have an income.

Finally, a consideration of the location of the studio: central area and served by public transport. The central area because usually the city centers are lively areas, with rich proposals for both day and nightlife; but it is essential that there is also an excellent public transport service in the immediate vicinity of your apartment so that future tenants, if they do not want to use the car for travel, would still have the opportunity to go anywhere.

Alternative of investing in an apartment

The box is a very interesting alternative. First of all, the condominium costs of a box are much, much smaller than those of an apartment, and this is definitely an advantage. These kinds of residential options are largely popular in the USA. Even if there were extraordinary condo fees in the complex where your garage is located, the rates for you would be very low. Moreover, buying a box you should not worry about expenses related to the makeover and upholding of the domestic systems nor should you worry about restructuring or upgrading costs of sorts.

And then, if you make the smart choice to buy a box in an area where there is an easy parking facility available you may have a very high probability of renting it. Even you could find tenants very quickly. Last but not least, the purchase of a box provides for a lower initial expenditure than that of an apartment. This means that, by renting it, you would be more quickly covered in expenses incurred.

Conclusion:

Real estate investment can be lucrative, if not flashy. It can help diversify your existing investment portfolio and be an additional income stream. And it doesn’t always require showing up at a tenant’s every beck and call. The trouble is that many new investors don’t know where or how to invest in real estate. That is why it is necessary to pay attention and make use of some extra measures to be able to make the right choice.

Categories
Real Estate
Like On Facebook
Facebook Pagelike Widget
Categories
Archives
Find on Google +

RELATED BY