Real estate investment has become a value of patrimonial shelter. Real estate represents one of the best alternatives to protect assets against crises and economic devaluations.
Buying a property, without a doubt, is a success; insured money thanks to the inherent capital gain of this type of investment. However, there are certain aspects that you must know to take advantage of the best opportunities that it offers you.
Although you do not need to be a real estate agent to invest in the sector, it is recommended that you have the essential knowledge to move in that market.
In this article, Yarmoloy Group experts tell you everything you need to know to carry out the best operations.
What is a real estate investment?
The purchase or sale of real estate to obtain income or capital gains is what is known as real estate investment. This operation includes aspects such as financing, advice and the sale and rental of the property.
What are Real Estate Investment Funds?
The market offers a wide range of alternatives to invest in real estate. One of the best known are the Real Estate Investment Funds (FII), due to their accessibility for all types of investors.
FIIs are an investment vehicle whose objective is to incorporate the real estate business in the capital and stock market. This, in order to generate profitability for the investor.
One of the advantages of this alternative is that it is accessible to all types of investors. Even for small and medium investors or savers who want to grow their assets through a safe and profitable financial product.
Tips to make your real estate investment
Opting for real estate investment is one of the wisest financial decisions you can make throughout your life.
However, this way of investing requires a thorough analysis of fundamental aspects so as not to waste time and much less money. Do you want to know what they are? We list them below:
Define your budget
Knowing how much money you have is key. Above all, to avoid incurring debt or decisions that could put your capital at risk.
The most sensible thing is that you establish the amount of your capital that you can invest in a property. It must be an amount that allows you to cover the entire property or, at least, a down payment to access a mortgage loan.
Evaluate the area where you plan to make your real estate investment
Remember that generally the location of the property is a determining factor for the value of the property. Therefore, if your intention is to buy a property to rent or sell it and obtain a good return, you must prioritize the area where you will invest.
Make sure that the property is located in a safe area that provides a good connection with the avenues. In addition, if the property is close to hospitals, schools, and supermarkets, it can generate a higher economic benefit.
Consider the additional costs
Do not underestimate the expenses that you will have to make for reforms and repairs. Also consider additional expenses for management and deed and taxes. Remember that all this will have a weight in the budget .
Quote several options, before deciding on your real estate investment
Evaluating several options will help you invest in the one that suits you best. Then avoid choosing the first alternative you find. Try to evaluate four or five properties and weigh the advantages and disadvantages of each one before making a decision.
Many people expect a quick return on their investment. This is a big mistake, as gaining significant performance takes time. Capital gains are something that doesn’t happen overnight.
Instead of thinking about raking in profits in a hurry, focus on attributes that most don’t see right away. For example, looking for a property in an area that in the long term will attract people to invest in the place.
Review statistical data
Analyzing the market will allow you to know how the sector is moving when to invest and what your best options are.
Knowing statistical data will also serve to identify the type of property you want to acquire and the use that you could give to the property.
Information is power and it will help you better understand the market and the investment you will make.
Evaluate pre-sale purchase
Buying in presale has numerous advantages. One of them is that you can access lower prices because the construction is not finished.
This can be a huge advantage if you are looking to save on the purchase and then expand or remodel the home and add more value to it.
Examine the recreation areas
The amenities of the property are essential when investing because they help increase its capital gain. In addition, the recreation areas offer greater well-being and a better quality of life for your family.
What kind of amenities increases the value of a property? Gym, event room, green areas, pool, parks, area for pets, and private security.
Seize the moment
The pandemic has imposed various challenges at all levels. Covid-19 has put pressure on some sectors of the economy and created some havoc. However, in other areas it has multiplied the opportunities, such is the case of real estate.
As a result of the pandemic, local banks have expanded the facilities to access mortgage credit. The interest rate is around 9%, the lowest level since 2016.
So, if you are thinking of buying a property through financing, this may be the most suitable time.
Get advice from an expert
Having the support of an expert is not only better for locating the right house. It is also a guarantee that you will make the most successful real estate investment since the professional has the necessary experience and knows the sector in detail.