for investing in a new home, there are many factors to take into account to avoid being shipwrecked. Knowing first-hand some tips for making your phoenix real estate investment will make you feel like a fish in the water in this market:
Research and choose the right location
The location is one of the mostB relevant factors to make a good real estate investment. Choosing an area with medium and long-term revaluation plans that has the necessary services for day-to-day life increases the probability of subsequently selling and renting the home.
Also, it is important to invest near our city to be able to manage in person all the necessary procedures. In this sense, the expanding neighborhoods and the university areas become a safe asset when it comes to buying a property to use for rent. The coastal areas, meanwhile, become the perfect option to get a second residence.
Study the type of real estate investment
If you want your real estate investment to be profitable, you must pay close attention to the demand and supply that exists in your area of action. Investing in residential housing is most productive in small cities and coastal areas. However, the best option in large cities is to bet on commercial properties to obtain greater value for the lease.
In both cases, it is necessary to adequately inform yourself about the community expenses of the property, since the return that you planned to obtain with your real estate investment will decrease.
Check the physical and economic conditions of the house.
A property in perfect condition fully furnished and with an adequate orientation that provides light to space, greatly expands the possibilities of sale or rent. However, when acquiring a second home as an investment, other relevant factors such as the age of the home, the useful meters and the distribution of the rooms must be taken into account, since carrying out a reform can decrease the expected profits with the purchase.
In addition to checking the physical state of the property, you must also go to the Property Registry to verify that it has no financial burden and is not in any litigation.
Look for profitability and long-term appreciation.
Do you want to obtain short-term profitability after making a real estate investment? You have certainly been in the wrong business. Normally, it is not until five years after the purchase of the property that it begins to appreciate and an increase in its value can be observed.
Diversify the real estate portfolio
The profitability is inversely proportional to the risk you want to take. To minimize the risks of our investments, we must have a property portfolio that is diverse enough to avoid a sharp drop in our finances.
Thus, a diversified portfolio should include both homes that have high probabilities of revaluation and properties that have a high rental yield. In this way, you guarantee a broad amortization of the real estate investments made.