What are the Factors that matter in Real Estate?
Apr 12, 2017 Real Estate News
Investing in real estate is complex and the investor should be well aware of the risks and the long term benefits involved in the same. The major aim of investors is to strike the best deal and get the maximum benefit from it.
There are 9 factors that matter for the investment in the real estate:
1. Return on investment (RoI):
To earn higher returns in real estate the investor must learn that it a long term process and takes time. Patience is a virtue. Since real estate is not a liquid asset; it does not even provide quick cash in short period of time. It needs the established market and participants to sell the property for high returns. It is important to buy the property that can guarantee a good return later.
2. Renting it out:
Investors generally rent out the property to maintain their cash flow. They are more predictable and less risk is involved with them. Regular cash flow from them can help with the EMI and also help you when you are facing a financial crunch. It is important to manage the rental property properly for the steady cash flow.
3. Upgrade the property:
To get more rent or higher return from the invested property, the investor can upgrade it by doing some minor renovation. As times change, the styles and trends change too. It is important to keep this in mind and regularly upgrade the property for increased returns.
4. Security:
Investment in real estate is the safest and the most secure bet. As the prices don not fluctuate rapidly in real estate it is the most secure option. Real estate is one of the investments that can be covered with insurance. If any damage or loss happens, it can be covered through the investment. It is important to study and research on the property before buying.
5.Leverage:
Real estate is the most flexible investment option. Banks are ready to give the loan of 70-80 percent knowing that real estate is safe investment place and they are going to get a higher return at the end. When you leverage an investment, you get the benefit from it and the appreciated value of the property.
6. Loan pay down:
When an investor rents out his property, the tenant actually pays the loan amount as the rent to the investor thus, increasing the property’s net worth every month.
7. Property usage:
It is generally thought that when an investor buys the property, he looks to rent it out. It isn’t always the case, though. Sometimes the investor uses it for his own personal use or rents it partially and use the other half for personal use. It depends on the investor, how he wants to use the property.
8. Price appreciation:
Even though the real estate market is suffering now, the returns on investments are high. It is difficult to predict the real estate market but the prices are going to rebound sooner or later.
9. Extra investment:
Some properties require extra investment, like holiday homes or PGs/hostels. They require constant maintenance and management to increase the value of the property. The time invested in them is worth.
There are 9 factors that matter for the investment in the real estate:
1. Return on investment (RoI):
To earn higher returns in real estate the investor must learn that it a long term process and takes time. Patience is a virtue. Since real estate is not a liquid asset; it does not even provide quick cash in short period of time. It needs the established market and participants to sell the property for high returns. It is important to buy the property that can guarantee a good return later.
2. Renting it out:
Investors generally rent out the property to maintain their cash flow. They are more predictable and less risk is involved with them. Regular cash flow from them can help with the EMI and also help you when you are facing a financial crunch. It is important to manage the rental property properly for the steady cash flow.
3. Upgrade the property:
To get more rent or higher return from the invested property, the investor can upgrade it by doing some minor renovation. As times change, the styles and trends change too. It is important to keep this in mind and regularly upgrade the property for increased returns.
4. Security:
Investment in real estate is the safest and the most secure bet. As the prices don not fluctuate rapidly in real estate it is the most secure option. Real estate is one of the investments that can be covered with insurance. If any damage or loss happens, it can be covered through the investment. It is important to study and research on the property before buying.
5.Leverage:
Real estate is the most flexible investment option. Banks are ready to give the loan of 70-80 percent knowing that real estate is safe investment place and they are going to get a higher return at the end. When you leverage an investment, you get the benefit from it and the appreciated value of the property.
6. Loan pay down:
When an investor rents out his property, the tenant actually pays the loan amount as the rent to the investor thus, increasing the property’s net worth every month.
7. Property usage:
It is generally thought that when an investor buys the property, he looks to rent it out. It isn’t always the case, though. Sometimes the investor uses it for his own personal use or rents it partially and use the other half for personal use. It depends on the investor, how he wants to use the property.
8. Price appreciation:
Even though the real estate market is suffering now, the returns on investments are high. It is difficult to predict the real estate market but the prices are going to rebound sooner or later.
9. Extra investment:
Some properties require extra investment, like holiday homes or PGs/hostels. They require constant maintenance and management to increase the value of the property. The time invested in them is worth.
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