real estate investment

The ultimate goal when making an investment is to generate profits on the capital. When compared to other forms of investments, real estate stands out as the most lucrative form of investment that gives you assured returns over the years.

Within real estate itself there are numerous forms of assets – these include residential, commercial and land/plot investments. You could opt for investing in real estate company shares, buying and selling or give out as rentals. However, before settling on an investment strategy, there are a few key considerations to keep in mind. Here’s a look at some factors that define successful real estate investment:

Location

You will first need to finalize a location for investment, based on its expected growth in the coming years. Emerging locations away from the city center are always better for real estate investment as assets bought here are bound to go up in value with time. Once you have decided on a location, finalize on an asset within this area.

Developer

As with any other business, real estate investment is also prone to pitfalls and challenges. There are many fly-by-night developers who will collect your money and disappear and those developers who invariably deliver sub-quality end products or delayed handing over of keys. Thus, it’s essential you check the track records of the developer before finalizing.

Budgets and Loans

Before committing to making a real estate investment, you should to have a clear budget in mind. Aside from the one-time down payment, you will need to take a loan too. Look for loans with the best interest rates and ensure that your income allows you to comfortably pay out the monthly EMIs on your investment.

Market trends

All your investment planning can go in vain if you don’t keep a careful eye on market trends and make realistic changes to your investments accordingly. Stay focused on your real estate investment and assess market trends continuously to safeguard your asset.

Returns on investment

Once you have achieved your targeted returns, you should have a definitive exit strategy in place. Being greedy and holding on to the property even after that can sometimes affect the overall internal rate of return (IRR). Hope these points turn helpful!