When investing your hard earned money into properties, one has to take the necessary measures to ensure that you make the right decisions as you seek to profit from your ventures or even simply make sure that your purchase was worth its cost. To help us achieve just that, we’ve got a list of factors to consider in property investments as mentioned by the leading real estate agency professionals in town. Gather your pen and paper and start taking notes.
THE PURPOSE – Why are you buying a property in the first place? Is it for personal use as with residential assets? Is it for commercial and industrial use for your business? Or maybe you want to have them leased of and gain profits? Whatever it is do know your purpose because it will affect the other factors from here on.
THE BUDGET – Determine how much you can afford as well as your mode of financing the acquisition. There are many ways out there, loans and mortgages being two of the many. Every alternative has its own pros and cons so you have to weigh those against your case.
THE LOCATION – Properties are valued based on several factors and a major one is location. When it is located in a growth area or one that is in close proximity to certain establishments like schools, transportation hubs, hospitals and malls, it is considered a prime asset and is therefore more valuable. It also has greater potential as to appreciation in market value.
THE ONGOING COSTS – When investing in fixed assets, buyers need to take note of repairs and maintenance costs. They may not seem too much of an expense at present but they will be felt over time. Also you don’t want to buy something that needs loads of repairs to function, do you?
THE MARKET – It is also imperative to know about the market’s demand for the property whether you’re the buyer or the seller. The higher the demand for a certain asset then the higher is its price. When demand is low the price either stagnates or gradually recedes.
THE LAND – Real estate agencies also remind investors about considering the quality of the land in the area. There are those that do well as parks and gardens and those that can cater to skyscrapers. If you are planning on building something on it then be sure to get to know it more.