essential to know
What is essential to know when you want to invest in real estate? Real estate is an important additional source of income that has been gaining popularity over the last few years. However, in order to be successful in this field, it is necessary to know the market and the various investment opportunities that exist.
1. Find more information
It is essential to accumulate sufficient general knowledge before embarking in the field of real estate investment. For that reason, thorough research into the market and investment opportunities is a plus. Considering that the market changes on a daily basis, it is necessary to stay informed in order to refine your investment strategy.
2. Think about the location
To determine the suitability of the location, put yourself in the tenant’s shoes. You should research the neighborhood, the surrounding amenities as well as the proximity to nature, highways, the city, schools, etc. By placing yourself in their position, it will be easier for you to decide if the address of your investment is a value-added investment.
Note that it is equally important to think about resale and the present and potential value of the property.
3. Define your budget
Like any good investment, you need to define your budget. Your financial means are specific to you and, depending on your objectives, may vary. Moreover, knowing how to manage your personal finances will allow you to maintain a good reputation with your bank once they are informed of your investment decision. But that’s not all! In addition to having the necessary funds for your purchase, you must also have some precautionary money ready for your future tenants.
Key aspects to think about are: calculating the profitability of the building, liquidity (cash flow), method to generate profits, capital gains, etc.
4. Choosing a real estate professional to accompany you
Choosing a professional is a crucial step. As is shopping for your real estate purchase, finding a real estate agent to accompany you through the process is just as important. With their extensive knowledge of the real estate market and their vast experience, doing business with them is definitely an advantage for you.
Do you have additional questions? Contact us and one of our real estate agents will be happy to help you!