This article mostly targets first time real estate investors who have no prior experience or information about how things are done. Well some factors are rather obvious but do you know the nitty gritty of those factors, because one slight mistake and your millions could go down to waste.
The easiest and possibly best investment properties for first timers are residential single family homes because of their low maintenance and easy management.
Real estate can be slippery and overwhelming at times, especially for starters as it is riddled with many situations that can consume all your returns in one gulp.
Here are some of the most fundamental factors to consider before investing in real estate.
This is the most important thing for an investor. Remember the rent is your pay and therefore before investing, find out the rental rates in that area and if they are favorable, give it a hand.
The trick here is the more central the location, the greater the demand. Investing in a remote place that is inhabited by locals won’t help, it will be a waste of money, resources and labour. The best place to invest is a location’s proximity to transportation, social amenities like hospitals, learning institutions and business centres.
3. Employment Rate/Opportunities
Locations which have a growing job market for example, attract many people and that means that there will be many people who will be ready to rent your premises once they are done with.
We all like a safe and sound environment. Before investing, inquire about the crime rates and history of the location and then weigh all the options right before investing there.
Are there things in the neighbourhood that will attract your clients to your premises?
Something like good road, hospitals, a police post, water, electricity, a gym, a park, a mall or even a cinema.
6. Property Taxes
Property taxes will finally affect even your total income when you have finally finished your project. You need to asses the taxes in the area whether they are high or low and then sit down, weigh all options and make a sensible decision.
7. Future Development
Are there signs that the place could develop in the near future, something like are there malls coming up or a school being constructed?
8. Learning Institutions(Schools)
Maybe you are investing in a rental, and that means that even families will live in your premises. Families mean that there are children who go to school hence you should check out for availability of learning institutions around your property to make it easier for your customers to access them.