I want to invest in real estate. What do I need to know?

Real estate investments are one of the most profitable businesses on the market and more and more clients who cross our threshold are interested in buying an apartment for sale in order to rent it.

When it comes to an investment, it is important to have the calculations done and not be influenced only by the nice profit we estimate from discussions with friends. It is advisable to calculate the return or yield of the investment you are going to make, to analyze the operational costs that may occur and the liquidity of the property that you are going to acquire. In addition to all these aspects, it is important to analyze what type of apartment to buy and depending on what criteria to choose.

Most buyers who want to buy an apartment for investment, choose according to their own desires, the way they would like to arrange the apartment. In other words, I choose emotionally, I invest feelings and ideas.

Specialists recommend that when choosing the apartment you will rent, do not become emotionally attached to it, do not visit it too often and do not invest too much time, energy and feelings in arranging it. The most important thing is to focus on buying a home at the best possible price that will generate income for the next investment.

If you are looking for an apartment for sale you should think about the target audience you are targeting, ie the potential tenants and their needs. Would you like your potential clients to be students, families, employees of a delegated company for a short period of time? It is important to know who you want to address and what needs and expectations potential customers have.

Profitability assessment criteria are another aspect worth considering. It is good to analyze the purchase price compared to the value of the monthly rent to see how quickly you can recover your investment. The area where the apartment is located, the year of construction, the quality of construction, the long-term revaluation of the property (which will be the selling price of the apartment in 10 years) are very important aspects that affect the long-term investment.

Now let’s talk a little about the financial aspects of your investment.

Here are the 6 things we recommend you linger on before investing:

  1. How do we calculate the return we mentioned earlier? The value of the monthly rent x 12 months / the purchase price of the property. For example, in the case of a studio, the investment can be recovered in 8 years provided that it is occupied throughout this period.
  2. Appreciation or depreciation of real estate. According to studies, properties located in the city center are more valuable compared to those located on the outskirts.
  3. Unemployment rate, ie the number of properties that are available for rent in the area where you want to invest. What is the length of time these properties remain unoccupied and what is the bargaining margin you should expect are aspects to consider.
  4. Operational costs – the cost of acquisition, furnishing, interior maintenance, overhead costs on the stairwell, renovation of the facade are costs that influence the desired profit and the payback period.
  5. Liquidity – or in other words how fast you can sell your property and at what cost. Is your property for sale or will you need to sell at a loss to get rid of it.
  6. Alone or with the help of a professional?Do you choose to invest alone? Do you have all the knowledge you need to buy a better, more liquid property in an area with long-term growth potential? Or do you go as your friends suggested to you that a certain area is in trend where the appreciation potential is exhausted and the yield decreases?

Did you know that a beautifully furnished apartment can be rented up to 20% more than the market average? This and many other important aspects that affect your long-term investment can be found out with the help of a specialist. It is important to invest and make a profit, but it is equally important to do well on the first try and enjoy a beautiful journey throughout this journey.

Our agents are at your disposal every day of the week to help you with tips, opinions and properties that will add value to your bank account and society.