If being in the real estate would be easy, everyone would do the same thing to taste success in their life. But this is not the case and this is why when it comes to investing in real estate, normal people starts by considering the negatives first. The truth is hard and it says that no matter how much preparation you take, how much information you collect, there are some factors which cannot be controlled. And a successful investment is often based on those factors. So, here are some factors that you should consider while planning to invest in real estate.
The economic factor
There may be confusion whether this should be the first factor to consider or not but one thing is certain that the economic factor can never be ignored. The state of the economy always plays a very crucial role on the real estate market and this is proportionate to the economic condition. If the economy is going through a downturn, the same can be expected from the real estate market as well. Moreover, there are some specific kinds of properties that are more sensitive to the real estate condition like hotels. So, you should also consider the sensitivity of the property with the economic ups and downs.
Condition of the property
This is another very important factor to be considered while investing in real estate. If you have already planned to invest in property, you should verify the present condition meticulously. You may hire the assistance of the professionals who are expert in property verification. The same is true when you are buying a used property. The present condition, durability, the previous purpose of use; everything should be considered. This is also required to determine the price of the property as well.
Location and amenities
It is known to even an inexperienced investor that three most important factors of real estate investment is ‘location, location and location’. This particular factor includes a whole lot of things such as the distance from nearby bus stand or metro, distance from the shopping centers, market, schools, hospitals, police stations. All these factors come into consideration while talking about the location. Moreover, a particular view in front of the property or a connection with the highway may have an impact in the value. Apart from that all local amenities are also considered and they do influence the property price.
The purpose of the investment
This is another very important but often ignored aspect of real estate investment. Investors are often clueless with the reason for investing money. Whether you are buying the property for your own use or for any other purposes, you should have a clear concept about the purpose of your investment. Not only that, you should also calculate and collect information about the kind of return you can expect from your investment. Remember, your investment is always about the return. And unless you become specific with the reason of your investment, you will not be able to make the most of it.
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